You can purchase a supplemental health insurance plan like hospital indemnity; critical illness; first diagnosis cancer; heart attack/stroke/cancer policies that can include hospital indemnity riders; and accident coverage as additions to basic health insurance policies.
Maximum issue ages differ between carriers, states, and types of plan, but these plans are also generally available to seniors up to varying ages, depending on the state, carrier, and type of policy.
As an exception, the GAP plan is not available for issue beyond age 64.
Eligibility is based on answering some health questions that vary between type of policy and carrier. These policies are issued on what is called a "simplified issue" basis, which means that it's generally easier to qualify for these policies than for fully underwritten plans.
Why One of These Policies Makes Sense
Depending on need, individuals and families under age 65 should consider one or more of these policies, as premiums are based on age, and younger people can buy policies at very attractive premiums. For example, families with children should consider an accident policy; and critical illness policies will provide income in case of a critical illness.
Hospital indemnity plans are excellent supplements to Affordable Care Act policies with high deductibles. (For example, buying a Bronze level Health Savings Account plan together with a hospital indemnity policy may be more affordable than buying a silver or higher metallic level plan that has a lower deductible.)
These policies are also attractive to seniors who want to supplement their basic health coverage. They can help pay for expenses not otherwise covered by Medicare Supplement, Medicare Advantage, or Original Medicare plans due to hospitalization, diagnosis of cancer, or critical illness. These policies are NOT substitutes for these basic plans but, instead, offer a way to purchase additional protection.
Learn more about each of these types of plans by clicking on the applicable button below. Call us at 877-734-3884, as there are many alternatives, options, carriers, and types of plans available.
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These policies pay a lump sum benefit (amount differs by carrier) upon hospital admission and contain provisions to buy additional coverage for each day of hospitalization up to the amount and number of days of coverage offered by the carrier. Additional riders can be added (varies by carrier) to cover items such as durable medical equipment, physician and surgeon benefits, RN at-home benefits, and daily skilled nursing facility benefits.
These policies are available through age 84. Availability and provisions vary by carrier and state of residence.These plans are offered on a guaranteed (i.e. no health questions) issue basis to individuals for those between age 64 ½ and 65 ½ in some states.
Gap plans are available in only a few states (e.g. GA, NC, TN, and SC) and, to our knowledge, are offered by only one carrier. Policies are issued only up to age 65 and coverage stops at that age.
You purchase benefit units that go into a pool of money that can be used to pay for expenses not covered by your basic health insurance policy
Depending on the carrier and state where you live, critical illness policies can be purchased up to age 70. These policies pay lump sum benefits for a list of critical illnesses, e.g. cancer, heart attack, stroke, and other illnesses and conditions such as organ transplants, paralysis, major burns, etc.
Covered critical illnesses vary by carrier. Most carriers insure for a face amount, and the face amount is paid when one of the critical illnesses occurs. One carrier offers a policy that pays separately for each of three categories: vascular, cancer, and other listed critical illnesses.
Depending on the carrier and state where you live, cancer policies can be purchased up to age 85. These policies pay lump sum benefits upon diagnosis for cancer.
Payments can be used for any purpose including living expenses and are designed to pay expenses not covered by your health insurance policy.
One carrier has a very innovative cancer and heart attack and stroke insurance policy. You purchase either a first diagnosis cancer policy and/or heart attack and stroke policy in units between $5,000 and $100,000. You can then add a choice of several riders to the policy that cover hospital care:
- EITHER a hospital indemnity rider; or
- An intensive care unit rider.
- OR you can buy a combined hospital and intensive care unit rider.
You can buy these policies in units of $100 to $1,000 per day (intensive care unit coverage is double under the combined rider).
You can tailor the policy further by adding a choice of several other riders. You can purchase this policy with issue ages up to age 99. Coverage limits, issue ages and other provisions vary by state. Hospital and intensive care unit benefits are reduced by 50% at age 65.
States like Florida are very restrictive about approving stand-alone hospital indemnity policies, and such policies in Florida are generally available only up to age 65. Since this policy provides hospital indemnity benefits as a rider to a basic Cancer and/or Heart Attack and Stroke policy, you CAN purchase hospital indemnity coverage in Florida if you purchase one of these policies.
Accident plans from one carrier can be bought with issue ages between 18 and 74 depending on the state. Such policies (also sometimes called "accident medical expense" policies) usually are issued only up to age 65 with most carriers.
These policies pay benefits for a range of accidental injuries, treatments, and associated costs.
These are excellent to consider for families with young children, as well as older adults. Young children and older adults are especially prone to having accidents.