Generally, supplemental insurance is additional coverage that will pay for things a standard insurance policy does not cover. In most cases, cash benefits are paid directly to the insured to pay medical expenses, lost wages or other financial items when the insured is injured or recovering from an illness.
The following information is an overview of two supplemental insurance providers in the United States: AFLAC and Combined Insurance Company of America.
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Most people are familiar with the AFLAC commercials that feature a duck demonstrating how well the company protects its customers. After an accident that results in an injury or illness, those who carry an insurance policy with AFLAC can receive cash benefits to pay for expenses.
What the commercial does not tell us, however, is that the insurance company also offers life insurance and cancer care policies.
Description of AFLAC Insurance Policies
The following describes the insurance policies associated with what AFLAC offers.
Accident insurance pays for expenses related to an injury after an accident. AFLAC will send, at the customer’s request, a cash payment for a covered accident to help pay for:
- Emergency treatment
- Lodging needs
- Broken teeth
- Confinement in ICU
The purpose of this coverage is to alleviate out-of-pocket expenses that can add up while a person seeks treatment and recovers.
Cancer-Specified Disease Insurance
This policy is designed to protect a person’s income and savings from medical related expenses that are not covered by a major health insurance plan. AFLAC will also provide cash benefits while a person receives covered cancer treatments. These include:
- Seeing out-of-network specialists
- Travel and lodging away from home for treatment
- Help with child care and other household expenses (utility bills, house and car payment)
- Payment for deductibles
- Experimental cancer treatment
Lump Sum Cancer Insurance
This insurance policy will pay a pre-determined amount to anyone who is covered and diagnosed with cancer. The money can be used to pay for all expenses, including medical care and household bills.
Juvenile Life Insurance
No one wants to consider losing a child, but AFLAC offers a life insurance policy that provides peace of mind for uncertain times. Additionally, purchasing life insurance for a child might provide a better chance for insurability later in life. AFLAC offers two types of polices under the juvenile program: juvenile whole life and juvenile term life.
Juvenile whole life is a death benefit that builds cash value that can be used to borrow funds. The policy is enforceable for a lifetime when premium payments are maintained. The amount of the policy doubles when the child turns 18 without an increase of premium payments.
Juvenile term life also provides a death benefit, but is only payable until the child turns 25. At that time, the covered child may wish to convert the coverage into an individual permanent life policy.
Coverage for dental insurance typically varies by state. However, some general coverage terms may apply to every policy.
- No network restrictions – Participants may select their own dentist without worrying about coverage restrictions.
- No deductibles – Participants are not required to pay out-of-pocket for a deductible each year. Benefits are fully paid after the related waiting period.
- Competitive rates and rate stability – Specific benefit amounts are included in the dental plan for wellness, diagnostic, and treatments. Participants will not see a rate increase based on group demographics or the number of people who use the insurance.
Combined Insurance Company of America
Combined Insurance Company of America is another supplemental insurance provider, but without the popular television commercials. Nevertheless, Combined Insurance also offers several insurance policies for customers who need supplemental coverage.
Since 1922, Combined Insurance Company of America has provided insurance plans to customers across the country. The company has experienced many changes over the years and is now part of an international insurance group with offices in Europe and Asia Pacific.
Description of Policies
Combined Insurance Company of America provides a variety of insurance policies to help pay for expenses after an accident or illness. The company offers coverage for disability insurance, accident insurance, supplemental health, cancer care protector life insurance and Medicare supplemental insurance.
Disability insurance coverage supplements the financial needs of a person who is unable to work and totally disabled. A person will receive a set monthly benefit payment to cover lost wages. The money is used for basic household expenses such as food, transportation and utilities.
When an individual is totally disabled, most policies will provide coverage for up to two years. Benefit payments are maximized with workers compensation and Social Security benefits. However, if an individual does not receive either social benefit, Combined Insurance will pay the full benefit amount.
Supplemental Accident Insurance Coverage
This supplemental coverage will provide benefit payments for emergency room care, hospitalization and recovery income after an accident. Typically, payments help pay for expenses not included in a major health insurance plan.
Similarly, supplemental health insurance helps a family through difficult financial times after an illness. The supplemental policy usually pays for:
- Unexpected expenses related to a covered illness
- Daily cash benefits during a hospital stay
- Financial assistance for everyday expenses
- Benefits paid for total disability
Cancer Care Protector
Cancer care protector is supplemental insurance coverage for cancer related expenses. Most of the covered expenses include:
- Intensive care treatment
- Cost of surgery and anesthesia
- Cancer treatments such as chemotherapy and radiation
- Private nursing care
Supplemental Life Insurance
This life insurance policy provides protection after the loss of a loved one. Generally, benefits paid are used for funeral expenses and to replace the lost income.
The whole life protection policy with Combined Insurance provides coverage through age 100. Cash values begin during the second or third year of policy enforcement.
All supplemental life insurance policies include the following features:
- Waiver of Premium payment if total disability occurs between 16 and 60 years of age
- Proceeds paid through a living benefit/accelerated death benefit while the insured is alive
- Accidental death benefit pays double the policy value
Medicare Supplemental Insurance
Coverage plans for the Medicare supplemental insurance may vary by state, but offer standard benefits to all:
- Those covered can select their own doctor
- No exclusions for pre-existing conditions
- No waiting periods – coverage begins immediately
- In most cases, claim forms are not required. Those covered only need their policy number and Explanation of Medicare Benefits
- Multiple plan options
- Convenient customer service from an in-home, licensed professional or by calling a toll-free number.
Everyone wants peace of mind when faced with an unexpected illness or accident. Concerns with paying everyday living expenses are exacerbated by mounting medical bills. Consideration for policy options and personal needs can help someone make the best choice when purchasing supplemental insurance.
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