Who this is for: People who want a financial cushion if cancer, a heart attack, a stroke or an accident puts them in the hospital, including households with high-deductible health plans and business owners whose income depends on them.
How cash-benefit plans work
Supplemental plans generally pay a cash benefit directly to you when a covered event happens, rather than paying doctors or hospitals. You decide how to use the money. People use it to keep up with a mortgage or rent, car payments, utility bills, or ongoing business expenses while they focus on recovery.
What triggers a payment, how much it pays, waiting periods and limits on pre-existing conditions all vary by policy. Dagan explains those terms for each plan he compares, and you can confirm them with the carrier before you buy.
Cancer insurance
Cancer insurance is a supplemental plan that pays cash benefits after a covered cancer diagnosis or treatment, according to the policy's terms. The money isn't tied to a specific medical bill, so it can help with a high deductible, lost income or household costs during treatment.
Heart attack and stroke coverage
Heart attack and stroke coverage (often sold as critical illness insurance) pays a cash benefit after a covered heart attack, stroke or other qualifying condition named in the policy. Which conditions qualify and how the benefit is paid differ between carriers.
Accident and ICU coverage
Accident and ICU coverage pays cash benefits for hospital stays after an accident or for time in intensive care, according to the policy's terms. It can help with costs that build quickly during an unexpected hospitalization.
How supplemental plans fit with your health plan
A health plan pays your doctors and hospitals. A supplemental plan generally pays you. The two are designed to work together: supplemental cash benefits can help with costs the health plan leaves to you, such as deductibles, and with living expenses during a period when you can't work.
If you don't yet have a health plan, start with health insurance options.
Plan availability, benefits and costs vary by carrier, county and plan year.