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Is Supplemental Insurance Worth It?

Supplemental insurance policy types are very attractive to employees for many different reasons, but are the added expenses and benefits worth it for your company? For some businesses, the answer is no, and for others, it’s a resounding yes.

Is supplemental insurance worth it? Read on to find the answer. If you have any other questions about updating your company’s employee benefits, contact our team at Beckham Insurance group for a free quote!

What Is Supplemental Medical Insurance?

Supplemental medical insurance, as its name would suggest, is a health insurance coverage type that offsets the costs of medical-related expenses above and beyond what normal group insurance policies do. This extra coverage can extend to pay for coinsurance costs, copays, deductibles, and other supplemental benefits to ensure that individuals have all the necessary coverage they need rather than trying to make generalized policies fit their varied needs.

What Are the Benefits of Supplemental Health Insurance?

There are many benefits to securing a supplemental health policy. They’re typically very cost-effective, pay benefits directly to policyholders, and improve your business’ retention and recruitment rates


Supplemental insurance plan costs may differ depending on where you are located, but typically policies come in around $150 per month or just under $2,000 per year.

Direct Payments

Unlike other policy types, supplemental insurance plans typically pay their benefits directly to employees so that they can use them in times of distress–however best benefits their families, rather than having to strictly use the funds for highly-specific purposes that may not meet all of their needs.

Improve Retention and Recruitment Rates

When you show that your company cares for its employees by providing insurance offerings above and beyond the minimum requirements, your retention and recruitment rates will naturally improve as well. People want to belong to groups and businesses where they are appreciated, and by providing these additional benefit types, you encourage employees to want to remain with your brand and, in turn, draw more high-value employees to join your ranks.

Common Supplemental Health Policy Types

There are numerous different supplemental health insurance types available on the market today. Some policies are very niche and designed to help with specific ailments and illnesses, and others are more general to accommodate a wider range of issues. Let’s take a look at four of the most common supplemental insurance types to get a better idea of just what may be covered under one of these policies.

Dental and Vision Coverage

The most common supplemental insurance plans offered by businesses to their employees today are dental and vision insurance. Typically, these policies will cover yearly check-ups, dental cleanings, eyeglass prescriptions, and some minor procedures.

Life Insurance

Life insurance policies never benefit the policyholders, but they are still a highly valued insurance type because they ensure that any beneficiaries are taken care of in the event the policyholder dies. The money can be used for any purpose that the named beneficiaries choose including funeral costs, home mortgages, bills, and other payments that may be necessary after death.

Accidental Death and Dismemberment

Similar to life insurance policies, accidental death and dismemberment insurance pays out a lump sum to named beneficiaries in the event of the policyholder’s death. However, there is one key difference between these policies. With life insurance, the death may be caused by any number of reasons, and it can still receive coverage. Accidental death and dismemberment policies only cover incidents that were solely the result of an accident with very few exceptions.

Critical Illness Insurance

Critical illness insurance is another supplemental insurance type that pays out a lump sum of cash. This payment usually occurs after the policyholder is diagnosed with a covered critical illness including but not limited to cancers, organ transplants, heart attacks, strokes, renal failure, and paralysis.

Who Should Consider Secondary Medical Insurance?

Supplemental health insurance can aid a wide range of people in paying medical bills above and beyond those covered in your general health insurance policy. If you believe that you need extra coverage, investing in supplemental insurance may be exactly the right move for you.

Individuals with family histories of risk in specific medical areas, those who have higher health-risk jobs, and those more advanced in age benefit better from these policy types and they have a higher chance of using their benefits.

Should I Offer Supplemental Insurance to My Employees?

There are many benefits to offering supplemental health insurance to your employees. It will give them added protection in case of an accident or unexpected life event, provide high-quality potential employees with more incentive to join and remain at your company, and shows that you’re genuinely interested in your employees’ well-being which also improves your recruitment and retention rates across longer periods.

Get the Answers You Need at Beckham

So, is supplemental health insurance worth it? We hope we helped answer your question! At Beckham Insurance Group, we know that choosing health care coverage for your employees can be a daunting task, but it doesn’t need to be. If you’re considering changing insurance policies and want to learn more about the benefits of secondary coverage, contact our team to see if it is right for you.