Do you have all the insurance coverage you need?
Health insurance and disability insurance are not the same thing, although they are frequently combined to ensure you have adequate coverage.
Health Insurance
Each plan is a little different, and your specific health insurance policy might have more or fewer benefits depending on the provider, your budget, and your individual needs.
In general, though, health insurance is meant to cover your medical expenses, both routine and emergency, when you visit a doctor or hospital.
Health insurance generally covers some or all of your costs associated with:
- Routine health screenings
- Check-ups
- Immunizations
- Emergency medical care
- Treatment of illness or injury
You may be expected to pay a deductible for certain health services or treatments, and your policy may have a maximum amount that will be paid towards medical costs before it’s your responsibility to cover expenses out of your own pocket.
There’s one very important thing that health insurance does not generally cover, though:
Your lost wages.
Disability Insurance
If you become sick or are injured and can’t work, you now have two expensive problems.
There are treatment costs to be paid, hopefully by your health insurance.
But what about the money you lose and the bills that go unpaid because you’re not earning a wage while you recover?
Most likely, your health insurance will only pay for your medical expenses unless you have additional disability insurance.
To be completely covered, you need both health and disability insurance, or you’re putting your own and your family’s financial future at risk.
Are You Covered?
It’s time to check your current insurance plan.
Some employers include long-term and short-term disability insurance in their company health plans, but not all.
Ask your manager or your human resources officer about what is and isn’t covered in your insurance plan, and if you aren’t covered by disability insurance, you probably need more coverage.
A Word About Supplemental Insurance
Supplemental insurance is meant to fill any gaps left over after your health and disability insurances kick in.
The payments from your supplemental insurance can be used to cover any kind of expense, from groceries to mortgage payments to gasoline in your car, and it’s something you should seriously consider if your income supports a family.
Between your existing health and disability coverage, though, you might not need supplemental insurance.
Start with health and disability, and if you’re not confident that your family will be financially sound should you have an accident or illness, you can start shopping for additional supplemental coverage.
