Secondary health insurance can be another health plan, like the one you get through your spouse. Usually, it’s another type of plan you bought to extend your coverage. In that case, you might hear it named “supplemental or voluntary insurance coverage.” It’s important to remember that primary and secondary plans complement each other to offer coordinated benefits.
We are all different and need different supplemental insurance plans, depending on the circumstances. Below, you’ll find out how Peggy, Cecilia, DeWayne, and Kevin use special policies to prepare for financial or health challenges that life unexpectedly throws their way.
You can also watch this video to learn about the different coverage options available to you, in addition to the medical plan. All in 60 seconds:
Transcript: What options do I have for more comprehensive health coverage?
Dental plan: the connection between the mouth and the body
What happens in the mouth can affect your overall health. Regular dental care is especially important for people with diabetes, as they have a tendency to develop gum disease. Dental plans generally cover routine dental cleanings and preventive care, as well as procedures, such as fillings and extractions.
Peggy is 38 years old, a mom and a wife, and lives in Raleigh, North Carolina. She works as a receptionist at a local hotel and purchased dental insurance from her employer, although the family has health insurance through her husband, Jim. She’s glad she did: Peggy broke a filling eating popcorn and she needs to fix it. Since she has now chosen a more comprehensive plan, she will only pay a portion of the cost of the new filling.
In one week, one of the parents in your young son’s group of friends gives you some news. According to experts, it is now recommended that children see a dentist for their first visit before their first birthday, or shortly after their first tooth erupts. Your child is already two years old and has not met this requirement! Peggy was delighted when she found out that with her plan, she covered that visit for her son.
Vision plan: a picture of your entire health
With vision plans, comprehensive routine eye exams are generally covered, as is a portion of prescription lenses (eyeglasses or contacts) and frames. Like dental care, eye exams can detect early signs of general health problems, such as high blood pressure and lupus. That is why it is important to consult an ophthalmologist even if your vision is perfect.
Cecilia is 27 years old, single, and lives in Miami, Florida. She works as a reviewer for a local magazine and has worn prescription glasses since her teens. She would like to have some more stylish frames this year and she knows that with her vision plan, she gets an annual bonus for eyeglass frames as well as a reduction in the cost of prescription lenses. Also, if she wanted to try contact lenses, she could use the lens benefits for that. Either way, Cecilia will look like never before and she will be able to protect her vision in the long run.
Hospital care plan: extra help when you need it most
A hospital indemnity plan is a popular supplement to High Deductible Health Plans (HDHP). With this supplemental insurance plan, you are offered a lump sum check if you are admitted to the hospital. You can use it to pay for out-of-pocket medical costs, like deductibles and coinsurance, or non-medical expenses, like rent and utilities.
DeWayne is a 49-year-old divorced father who lives in Philadelphia. He is an accountant and always analyzes the economic aspect of all expenses. He has a high deductible health plan through his employer and has also opted to purchase a hospital indemnity plan. Although his family is healthy, he knows that an unexpected hospital stay can run up to $10,000; and with the additional plan, he would get help paying for out-of-pocket expenses, such as his high medical deductible.
Not long after, DeWayne’s daughter is hospitalized for appendicitis. With her hospital plan, she pays herself a lump sum benefit that helps offset medical bills. In addition, he, as a father, is allowed to concentrate on his young daughter and her recovery.
Knowing that his family’s needs will be met, Kevin worries less and can focus on his recovery.
Disability Insurance Plan: Covering Your Expenses When You Can’t Work
Disability insurance plans work when you get hurt or sick because they cover a portion of your income for everyday expenses. Short-term disability coverage can last between 9 and 52 weeks. Then, long-term disability coverage kicks in.
Kevin is a 52-year-old man who is married to his high school sweetheart and lives in his hometown of Jacksonville, Florida. There he also raises his four children. He never got sick…until now. After feeling extremely tired, Kevin went to see his primary care doctor, who detected blockages in his arteries. The stent placement was unsuccessful and now Kevin will have to undergo bypass surgery. Since he has no other serious health problems, his surgeon believes that his recovery will be complete and quick. However, he will be unable to work for 8 to 12 weeks.
The family relies on Kevin’s income to cover major expenses. Fortunately, he has a long-term and short-term disability insurance plan through his employer. Kevin will receive 60% of his income while he is unable to work, and the family will use savings to cut costs and help make up the difference. If all goes well, he will only need to use his short-term disability insurance plan. If complications arise and recovery is delayed, he will begin using his long-term disability insurance plan. Knowing that his family’s financial needs will be largely met, Kevin worries less and can focus on his recovery.
Here are some insurance options, in addition to your health plan, that you may want to consider. If you get health insurance through your job, your employer will tell you what additional plans are available to you. Some supplemental insurance plans may also be available directly through insurance companies.
