Supplemental health insurance is extra coverage which you can buy if your basic policy is not enough to cover your medical costs. This policy should be seen as extra insurance and it should not replace your basic health insurance plan.
Medigap is one of the most common types of supplementary medical insurance. This plan can be sold by private insurance agencies to people who are already receiving Medicare coverage. Medicare insurance does not cover all medical services or treatments! The gap can be filled by a supplemental health plan!
Medigap is not the only way you can get this type of insurance tough! You can buy a policy from almost any insurance company and you can also get it through your employer!
These policies have been heavily advertised, but in some cases you do not need it! Supplemental medical coverage can be useful in certain situations like Critical Illness Insurance which provides a lump sum if you suffer from a serious disease like cancer. These cases are usually implying a lot of expensive medication, traveling and various deductibles. Depending on the policy, these extra costs can be covered!
If you have a health insurance, it is important to decide if the coverage will be enough. Knowing for sure from what you'll suffer is impossible; however it is possible to find out what illnesses are more likely to affect you in the future. Think of your family's medical history: some diseases are genetically inherited. Men have higher chances of suffering from heart diseases; smokers have a higher risk of getting lung cancer. As you can see, your current lifestyle provides enough information to help you predict possible future illnesses.
Determine the likelihood of suffering of such diseases. If your health insurance policy's coverage is enough to get you and your family through these illnesses, then you do not need extra insurance!
If you think that your family is not properly covered, you should look at some supplemental health insurance plans! It is always important to do the math! Compare quotes and calculate if the extra cost is worth it or if not.
It is very important to pay a lot of attention to your policy's terms and condition! A supplementary plan will not cover absolutely everything! In some situations, it may be a better idea to deposit the money in a savings account!
In conclusion, you should buy extra health coverage only if you need it! If you have a healthy and active lifestyle, the extra cost may be unnecessary!