Having health insurance is important, but it is increasingly expensive and many plans come with high out of pocket costs. Many Americans do not have enough in savings to cover the costs related to a major illness even with their health insurance. Ancillary health products can help you cover these costs and save you peace of mind.

Types of Ancillary Products:
1. Cancer- Receive a lump sum should you be diagnosed with cancer.
2. Critical Illness-Receive a lump sum for a critical illness diagnosis, you can add cancer to this.
3. Accident- This pays out a schedule of benefits, a set amount for certain accidents.
4. Hospital Indemnity- This pays a daily amount while you are in the hospital.

• Immediate Payout-
 Cancer and Critical Illness plans will pay out a lump sum that can help with immediate costs. The plans will pay out a sum of $1,000-$100,000 depending on the plan and the carrier that you choose. There are riders that you can add that will even help cover travel and lodging for family.
 An Accident plan will pay a specific amount for each injury covered under your plan. For example, the amount they pay would be different for a broken ankle vs. a broken leg. This is usually used to help cover costs that may not be included with your health insurance because of co-pays, co-insurance, or your deductible not being met.
 Hospital Indemnity plans pay you a set amount determined by the level of coverage that you sign up for each day you are confined to a hospital.

• Peace of mind- Ancillary products such as these help provide peace of mind for you and your family. If you were to be diagnosed with cancer for example, would your family be able to afford you taking time off work? Could you afford your spouse taking time off work to help take care of you? What about any travel costs you may incur for treatment? The lump sum benefit amount can be used to help you pay bills while you are seeking treatment.

• Options- More and more doctors are recommending holistic approaches to manage pain for major illnesses. There are riders that can be added to these policies that will help cover the cost of alternative care that your insurance company would not. Many of these plans also have wellness benefits that will pay you a set amount for getting a physical each year. Ancillary products can help give you more flexibility with your care.

Would you benefit?
These plans are designed to be in addition to health insurance coverage, meaning there is no coordination of benefits. You will be paid the amount specified in your policy regardless of what your major medical plan covers.

Many major medical plans come with high out of pocket costs that continue to rise as deductibles and premiums increase. These ancillary products fill in the holes that you may otherwise have to cover out of pocket for expensive treatments before your deductible is met.

Those on Medicare Supplement plans would also benefit from many of these ancillary plans. Medicare also has deductibles and even with a supplement your costs may not be fully covered if you find yourself hospitalized with a critical illness. There are some Medicare Cost plans for example that have a daily co-pay for being in the hospital. A Hospital Indemnity plan would cover the cost of that co-pay. These ancillary plans begin to pay out immediately, offering you relief from worry about how you were going to cover those expenses.

Most Popular Options:
The Cancer plans and Critical Illness plans with cancer riders are the most popular, but it really depends on what people’s budgets are and what they need. With a cancer diagnosis, out of pocket expenses are almost guaranteed to be high and the lump sum payouts along with the possible added riders can be extremely reassuring when the unimaginable happens. Cancer and Critical Illness can be purchased as standalone policies or they can be bundled together depending on what type of coverage you want.

Signing up:

You will have to go through some form of underwriting for all of these products but once you are approved your policy is guaranteed renewable for life. You will not receive a rate increase as you age, but there is the possibility of a rate increase if everyone in the risk pool takes one. Meaning if the plan rate goes up in general your premium will increase, but they will not raise it for you alone; everyone would be taking the rate increase.

There is not an age limit on these policies; there are plans designed for both consumers over and under the age of 65. Choosing the plan that is best for you will depend on your budget and your health needs.

If you are interested in learning more about these products contact us at 1-800-669-3959 and we will help you find an agent in your area!