Supplemental Health Insurance Companies

Anyone who's ever had a serious injury knows health insurance doesn't pay the entire bill. The insurance often has coverage gaps, and the lost income from a serious illness can be devastating. Most supplemental insurance helps replace some of the lost wages and provides the money to pay for any gaps in your coverage.

Medicare Supplements

The best-known type of supplemental insurance may be Medicare supplement policies. Medicare supplement policies cover only the items Medicare doesn't cover. For instance, the policies usually cover the co-payment due for skilled nursing care up to 80 days after Part B stops paying, which was $135 per day in 2009. And unlike traditional health insurance, there's usually no deductible; one of the typical benefits is to cover Medicare's deductible.

Companies that offer these types of policies often offer other types of health insurance as well. The list of companies licensed to sell in each state is often long. If you have traditional insurance and are ready for Medicare, check with your present insurance company for a Medigap policy, or you can find a list at your state's insurance website.

Dental Insurance

Medical insurance doesn't cover dental treatment, so dental insurance companies also are supplemental insurance companies. Most companies that offer supplemental dental insurance do so only through company-sponsored group plans. Some companies, such as MetLife, may offer only group dental in your state, while other companies, such as Security Life, Symetra Financial, Humana One, Ameritas Group and Covington Care, offer individual dental plans in many different states.

Vision Care

Another type of supplemental plan that offers products for both employers and individuals is a vision-care plan. Often these plans offer a specific amount for an eye exam, lens purchase and frames. VSP, Spectra and AARP are a few sources for vision care insurance, but many other companies offer supplemental vision care as well. Many of the individual plans offer discount programs.

Accident Insurance

If you're in an accident, supplemental insurance offers you cash for the expenses not covered by your policy, and the money goes directly to you. Some policies pay for ambulance services, X-rays, doctor visits, hospital stays and prescriptions, and some contain a schedule of benefits that pays per day for stays in the hospital or specific lump-sum amounts for broken legs or convalescence. You can have these policies in addition to your regular health insurance.

Companies such as Combine offer individual policies that pay cash, while companies such as Aflac offer accident insurance only through an employer-sponsored payroll-deduction program.

Cancer and Specific Diseases

Cancer or specific disease policies often offer a lump-sum payment for specific types of treatment. If you have radiation, for example, these types of policies pay a specific amount. Some of the cancer or major catastrophe policies pay a lump sum to those diagnosed with a disease they specify as catastrophic.

Companies that carry cancer or catastrophic disease policies include Aflac if you purchase through an employer, and Combine Insurance for direct purchase. While other companies sell these products, these are the two best-known companies.

Disability

Disability insurance pays you an income while you're disabled. When you buy the policy, you choose the elimination period, which is the number of disabled days before it pays, and the monthly benefit, typically 60 percent of your salary, and the length of time you'll receive benefits. Other options available for an additional premium include a cost-of-living increase and a more liberal definition of disability.

John Hancock, MetLife, Aetna, Paul Revere and Guardian are just a few companies that offer these policies. Group coverage is often far more reasonable in cost than individual coverage.

References

• List of all state Department of Insurance websites
• Indiana Licensed Medigap Companies
• A list of dental insurance companies that carry individual policies

Resources

• Types of Supplemental Insurance