Ancillary Products
What are Ancillary products?
Original Medicare (Part A and Part B) covers basic healthcare needs but it doesn’t cover everything. Ancillary insurance products go beyond the scope of traditional health insurance and cover aspects of your health not included in your healthcare plan. Although these ancillary products and services are coverages typically not covered by a primary healthcare plan but still are essential to our overall health.
Some products that fall within the ancillary field included:
- Dental
- Vision
- Hearing
- Cancer
- Heart Attack
- Stroke
- Hospital Indemnity
- Critical Illness
- Final Expense
Ancillary insurance products are never meant to replace your current health insurance. They are additional products that supplement your existing coverage.
How Ancillary Benefits Work
Your ancillary insurance carriers could be the same as your carriers for other insurance plans, or they could be different. For example, carriers who sell auto and home insurance are likely also to sell life insurance. Additionally, carriers who sell Medicare Advantage plans are likely to sell other individual health benefit plans.
Even if you have Medicare, ancillary plans provide voluntary benefits and do not fall under Medicare laws. You can enroll in ancillary products during any time of the year (unless you are enrolling through your employee benefits package, in which case your employer might have an enrollment period).
Ancillary billing is separate from Medicare coverage. If you are still employed, some ancillary benefits can be employer-contributory, meaning your employer agrees to pay part of your premium.
Many ancillary products, like cancer insurance plans, pay by lump sum. For example, you would receive a lump sum cash benefit upon diagnosis if you purchased a cancer policy. Keep in mind that a product may not be available or may require a wait time after a diagnoses. Unlike Medicare Advantage plans, ancillary products can and will put you through medical underwriting and can deny you for preexisting conditions.
Examples of products
Cancer, Heart Attack, Stroke
With the diagnosis of cancer or heart disease comes the reality of medical bills, time off for treatments, monies for living expenses, and for some, the cost of high deductibles. Cancer Insurance & Heart Attack/Stroke Insurance helps provide the resources you need so you can focus on your treatment, not your finances.
Upon diagnosis of cancer, heart attack, or stroke lump sums for the agreed upon amount are paid to you, not your insurance carrier or medical teams. The payout can be used to cover costs, even including loss of income, childcare, travel to facilities, home health care, rehabilitation/therapy, and any other out-of-pocket costs that Original Medicare does not cover.
Short Term Care
A short-term plan will cover you for up to a year for a temporary injury or illness. Short-term care is always an add-on option through a qualified ancillary insurance plan. If you’re concerned about short-term care, let your insurance agent know. They will help you decide whether Medicare Advantage, Medicare Supplements, or another ancillary product will be best for your short-term care needs.
Hospital Indemnity
Hospital indemnity insurance supplements your existing health insurance coverage by helping pay expenses for hospital stays. Depending on the plan, hospital indemnity insurance gives you cash payments to help you pay for the added expenses that may come while you recover. Typically plans pay based on the number of days of hospitalization.
Even if your medical insurance covers most of your hospitalization, you can still receive payments from your hospital indemnity insurance plan for extra expenses while recovering.
Final Expense and Life
Final expense insurance, also referred to as burial insurance, covers end-of-life expenses including funeral arrangements and any remaining medical or legal expenses that will need to be settled by your beneficiary. This coverage can ensure that your loved ones aren’t left with a financial burden, as the average funeral can cost $10,000 or more.
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