What is Supplemental Insurance?

Supplemental insurance helps employees pay for unexpected costs not covered by medical insurance.  With supplemental health plans, you can offer employees additional financial protection regardless of their medical insurance. Employees receive cash benefits directly, based on covered sicknesses, injuries, treatments and services. The cash can be used any way employees see fit — to cover basic expenses like groceries, childcare, and housekeeping, or out-of-pocket medical costs not otherwise covered by their medical plan.

Why Are Supplemental Health Benefits So Important?

The insurance industry has faced tremendous changes in traditional healthcare benefits. In particular, the burden of making health care decisions has shifted from employers to employees. Now more than ever, employees are forced to consider if they have enough health insurance, and if not, what coverage could fill in the gaps to help insulate them from devastating medical bills.

Why Offer Supplemental Health Insurance?

Offering employees supplemental health insurance as a voluntary benefit is a critical solution you can implement for your employees. It’ll help employees maintain financial stability, and will help you attract and retain a productive workforce. Supplemental health insurance — Accident, Cancer, Critical Illness1, and Hospital Indemnity Insurance — is one of the fastest-growing benefits.2

 

Types of Supplemental Health Insurance Plans

Accident Insurance3

Provides benefits to employees for more than 40 different accidental injuries requiring treatment, urgent care, or hospitalization, including common injuries such as burns and fractures, or services during treatment and recovery such as ambulance, physical therapy, and X-rays. Payouts are based on covered treatments, regardless of whether a medical plan also covers treatment costs. Three plan levels are available to meet the needs of employers and employees. Plans will increase benefits for covered children injured while participating in an organized sport. Key features:

  • Scheduled indemnity plan with three levels of coverage that determine the actual amount paid to insured employees

  • Multiple plan options can be offered to employees

  • Simple four-tier rate structure with 24-hour or off-the-job plan design options

  • Wellness riders supporting a comprehensive list of eligible screenings and preventive procedures including smoking cessation and weight-loss programs as well as annual physicals

  • Child Organized Sport Benefit pays an additional 20% of child benefits if a covered dependent child (aged 18 or younger) is injured while participating in an organized sport (child must be insured by the plan on the date the accident occurred)

  • Chiropractic visits can be a covered benefit depending on the plan schedule selected

Cancer Insurance4

Provides a lump-sum payment for diagnosis, screenings, and treatment. Payments are made to the employee, regardless of medical insurance, and can be used for any purpose. Three plan levels are available to offer coverage that fits your budget and your employees’ needs. Key features:

  • Scheduled indemnity plan available in three coverage levels

  • Benefits for procedures and treatments, such as surgery, chemotherapy, and radiation

  • Cancer screening benefit available that includes procedures such as mammograms and colonoscopies

  • Attained-age, issue-age, or composite rates available

  • Conditional guaranteed issue with one health question

  • Special underwriting consideration on takeover opportunities

Critical Illness Insurance5

Complements medical and disability insurance by providing a lump-sum benefit paid directly to a covered employee on the diagnosis of more than 30 different major, chronic, and debilitating illnesses such as stroke, heart attack, cancer, Alzheimer’s disease, and Parkinson’s disease. Plans can be tailored for different sized groups and with varying coverage riders. Key features:

  • Lump-sum benefits available up to $50,000 with guaranteed issue amounts available starting at 25 lives

  • Benefit options allow you to select the coverage that best meets your needs

  • Pays for the first occurrence of a critical illness while insured with the option to include recurrence benefits

  • No lifetime maximum. Benefits are payable on all conditions.

  • Children are covered at no additional cost, and no health questions are required

  • Cancer benefits can be excluded to ease bundling with a stand-alone cancer insurance plan

  • Attained-age or issue-age rates available

Hospital Indemnity Insurance6

Softens the financial impact of higher medical plan deductibles and other out-of-pocket costs associated with hospital admissions. Key features:

  • Reduces the financial burden of high deductibles/co-pays

  • Pays indemnity benefits directly to the employee whether or not charges are covered by medical plan

  • Highly flexible plan design

  • Sickness-only coverage option

Disclaimer

1

In New York State, Critical Illness is referred to as Specified Disease.

2

U.S. Voluntary/Worksite Sales Report, Eastbridge Consulting Group, 2016.

3

Guardian's Accident Insurance is underwritten and issued by The Guardian Life Insurance Company of America, New York, NY.  Products are not available in all states.  Policy limitations and exclusions apply.  Optional riders and/or features may incur additional costs.  Plan documents are the final arbiter of coverage.  This policy provides Accident insurance only.  It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Department of Financial Services. IMPORTANT NOTICE –THIS POLICY DOES NOT PROVIDE COVERAGE FOR SICKNESS. Policy Form # GP-1-AC-BEN-12, et al.

4

Guardian's Cancer Insurance is underwritten and issued by The Guardian Life Insurance Company of America, New York, NY.  Products are not available in all states.  Policy limitations and exclusions apply.  Optional riders and/or features may incur additional costs.  Plan documents are the final arbiter of coverage.   This policy provides limited benefits health insurance only.  It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Department of Financial Services. Policy Form # GP-1-CAN-IC-12, et al.

5

Guardian's Critical Illness Insurance is underwritten and issued by The Guardian Life Insurance Company of America, New York, NY.  Products are not available in all states.  Policy limitations and exclusions apply.  Optional riders and/or features may incur additional costs.  Plan documents are the final arbiter of coverage. This policy provides limited benefits health insurance only.  It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Department of Financial Services.  Policy Form # GP-1-CI-14.

6

Guardian Hospital Indemnity Insurance is underwritten by The Guardian Life Insurance Company of America, New York, NY and will not be effective until approved by a Guardian underwriter.  Products are not available in all states. Policy limitations and exclusions apply. Optional riders and/or features may incur additional costs. Plan documents are the final arbiter of coverage. This policy provides limited hospital insurance only. It does not provide basic medical or major medical insurance as defined by the New York State Department of Financial Services. Policy Form # GP-1-HI-15

2018-56463