Supplemental benefits can help offset expenses and give you flexibility to manage nonmedical costs. Here’s what you need to know.
Health insurance is essential, but even the most comprehensive plans don’t cover everything. Supplemental health benefits help fill those gaps by providing cash benefits you can use for medical bills and everyday expenses when a covered event occurs — like a hospital stay, a serious diagnosis or an accidental injury. These plans sit alongside your main insurance, offering an extra layer of financial protection when life takes an unexpected turn.
Supplemental health solutions
To learn more about Cigna Healthcare's customized and connected supplemental health solutions, view or download this PDF flyer.
What are supplemental health benefits?
Supplemental health plans are optional policies that pay benefits for specific situations, not broad medical care. Common plan types include:
- Accidental injury insurance: Pays a cash benefit for covered injuries from an accident. People often use these funds for things like rehabilitation, transportation or childcare while they recover.
- Critical illness insurance: Gives you a lump-sum payment if you’re diagnosed with a covered condition such as cancer, heart attack or stroke. This money can help with medical bills or household costs.
- Hospital care insurance: Pays a set amount following a covered hospitalization, which you can use for medical or everyday expenses.
These plans are different from traditional health insurance because they focus on financial support rather than paying claims to providers. Benefits are paid directly to you and can be used as you see fit — for health costs, practical needs like groceries and utilities during recovery, or even for vacation and leisure activities if you choose. The flexibility means the funds aren’t limited to out-of-pocket medical expenses or bills related to your illness or injury; you have the freedom to use the money in whatever way best supports your well-being.
Why might you need supplemental health insurance?
Even with good coverage, you may still have to pay deductibles, copays or coinsurance. Supplemental benefits can help offset these expenses and give you flexibility to manage nonmedical costs if you’re unable to work or facing higher day-to-day bills during treatment or recovery.
Individuals should never forgo care because of financial concerns. Supplemental benefits help alleviate the financial burden of unexpected health events, allowing you to focus on what matters most – your recovery and well-being.
Key considerations when choosing a supplemental health plan
Picking the right plan starts with your needs and budget. Here’s what to weigh:
1. Coverage needs
What matters most to you? Do you want protection for accidents? For serious diagnoses? For hospital stays? Pick the plan type that fits your top concerns. You may want to consider multiple plans for broader protection, including dependents, and look for wellness benefits that reward preventive care.
2. Cost vs. benefit
Compare the monthly premiums alongside the potential benefit amounts. Ask yourself whether the payout will truly help you with deductibles, copays and everyday costs if a covered event occurs.
3. Policy details
Read the fine print for exclusions, waiting periods, covered conditions, and whether the policy is guaranteed renewable. Look for outline-of-coverage documents and plan disclosures.
Real-life examples
- A broken wrist after a fall: An accidental injury plan may pay a benefit you can use for copays, physical therapy, rides to appointments if you cannot drive, or even childcare if you need it.
- A hospital stay for pneumonia: A hospital indemnity plan could provide a fixed cash amount per stay or per day, helping with medical and nonmedical costs while you recover.
- A serious diagnosis: A critical illness plan may pay a lump sum upon diagnosis of a covered condition. People often use it to cover time away from work, travel for specialty care, or explore treatment options not fully covered by their medical plan.
FAQ: Supplemental health benefits
Benefits are paid directly to you, and you can use the money for medical or household expenses. You may have the option to have payments assigned to your provider if you wish. Always check the plan’s payment terms to be sure.
Start with the outline of coverage and the plan documents. Look at covered events, exclusions, benefit amounts, waiting periods, and renewability. Then compare premiums to your financial risk.
Many supplemental health plans include a wellness benefit that provides an annual payment simply for completing eligible preventive care, such as checkups or screenings. This feature can help offset the cost of your coverage, and it also rewards you for proactively managing your health. Always review the plan details to see if a wellness benefit is included and understand how to claim it.
Supplemental health solutions
To learn more about Cigna Healthcare's customized and connected supplemental health solutions, view or download this PDF flyer.
