What are the benefits of hospital indemnity insurance?
Hospital indemnity insurance can be valuable for anyone, but people with chronic health conditions or a family history of serious illness may find this coverage to be especially worthwhile. It can also be an added help to offset out-of-pocket costs if you're pregnant, plan to get pregnant, or if you have an upcoming procedure that will require hospitalization.
Consider some of the following benefits of hospital indemnity insurance:
- You can take the benefits with you: In many cases, your hospital indemnity coverage will remain the same even if you move or leave your current employer.
- You can use the benefits for a wide variety of needs: Payments can be used for just about anything, including deductibles, coinsurance, medications, etc.
- You’ll typically have coverage for your loved ones: Many policies allow you to add family members to your plan.
What is accident insurance?
Accident insurance offers a payout for injuries caused by an accident. Accident insurance usually provides a one-time, lump-sum payment to be used at your discretion. Depending on your policy, accident insurance will cover a wide array of accidents, including fractures, burns, concussions, or broken bones. Some policies will also cover accidental death and pay your beneficiaries if you die from an accident. You can use accident insurance to pay for some of the following expenses:
- Emergency care
- Therapy services
- Medical exams
- Transportation and lodging
Many employers offer accident insurance as part of their benefits package, but you can also purchase the plan independently as a standalone policy in addition to your current medical coverage.3
What are the benefits of accident insurance?
An unforeseen accident can happen to anyone, so having accident insurance can be beneficial. Accident insurance may be especially appealing to professional athletes or adults and children who play sports. This type of insurance can also be a good investment for people in high-risk professions, such as firefighters and police officers.
Consider some of the following benefits of accident insurance:4
- You’ll have coverage for more than just injuries: Many plans come with additional coverage for things like accidental death, blindness, paralysis, and limb loss.
- You’re offered immediate coverage: Unlike other insurance plans, accident insurance often doesn’t require a waiting period before you can receive benefits.
What is disability insurance?
Disability insurance covers a portion of your income if you’re unable to work due to a serious illness or injury.5 Loss of income due to an inability to work can be caused by many things, such as severe back pain, diabetes, broken bones, mental health, and pregnancy. Disability policies can be short term or long term, depending on the disability.
Both short and long-term disability policies will have a required waiting period before the benefits kick in. Waiting periods will vary, but you can typically expect short-term policies to take a few weeks and long-term ones to take a couple of months.6
Disability insurance may be offered by an employer. Employers who provide group disability insurance will typically offer short term, long term, or both. Disability insurance can also be obtained through the government — like Social Security disability coverage — or purchased individually.7
What are the benefits of disability insurance?
Disability insurance is a good way to plan for the unexpected. The added financial support provided through a disability policy may be particularly valuable to you and your family if you're the primary breadwinner in your household.
Consider some of the following benefits of disability insurance:8
- You’ll still have income even if you can’t work: If you’re unable to earn a paycheck due to a disability, you can still receive a portion of your salary, which can help maintain your family’s standard of living.
- You can enjoy a tax-free benefit: Disability insurance payouts are tax-free as long as the policy was paid for yourself and not provided by an employer.
Do I need supplemental insurance?
Any of the above supplemental insurance policies can be beneficial — no matter your health, age, or occupation. Anyone who wants an extra layer of financial protection for themselves and their family, or who have high-deductible insurance plans, may want to consider supplemental coverage.