Basics of Supplemental Insurance – Part 2

We just came out of open enrollment, and our enrollers fielded lots of questions about how supplemental insurance works. May’s B&G detailed the benefits of having FRBT’s Accident Champion plan. In this issue, we will cover the need for hospital coverage and critical illness insurance. 

A very timely question kept popping up during Open Enrollment:  What happens if I get Covid-19; do you have something that will cover me? Because Covid-19 is still a very new diagnosis, there are no options available that specifically cover its diagnosis and treatment. Our High Deductible Buffer plan is a hospital indemnity policy that is designed to help mitigate your out-of-pocket expenses in the event of hospitalization, whether it’s the result of an injury or an illness. This plan is very attractive to people with pre-existing conditions because there are no health questions that could eliminate you from acceptance. Hospitalization for Covid-19 would be covered by this plan; it also provides benefits for outpatient surgery, ambulance transport, and annual wellness visits. 

Next: I’m young. Why do I need to consider a critical illness plan? When you’re young is actually the BEST time to begin critical illness coverage, for a couple of different reasons! First, the younger you are, the cheaper your premiums will be. Critical illness premiums are based on risk…and the older we get, the more likely we are to experience serious conditions such as heart attack, cancer, and stroke. Premiums are lower for younger applicants – and they stay that way! With our Critical Illness Champion, your premium is locked in at the age you are when you sign up – and it’s guaranteed not to increase as you get older. But these conditions don’t discriminate: we’ve seen too many colleagues, friends, and family members suffer from critical diagnoses even at a young age. Having critical illness coverage in place can help your financial situation tremendously in the event that you experience a serious diagnosis; it allows you to focus on getting better instead of worrying about how you’re going to pay the bills. Another thing to consider is the fact that if you were to suffer a critical illness situation at a younger age, you’d be ineligible for the coverage for at least 5-10 years afterward, depending on the diagnosis. One officer under the age of 30 suffered a series of strokes that resulted from an allergic reaction to medication used to treat his pneumonia, and this made it impossible for him to acquire the coverage for a period of 10 years. 

Questions about the High Deductible Buffer plan or our Critical Illness coverage? Please reach out to Yvonna Lex at 832.421.0852 or