How to Choose the Right Supplemental Insurance Pla

Updated on June 10, 2022

Working for a good company can provide you with many benefits such as health insurance, life insurance, and a retirement plan. However, another great benefit you may have is the option to apply for a supplemental insurance policy. 

While each of these add‐ons is nice to have, they’re not cheap. If you’re on a budget, then you’ll have to really weigh the benefits of each one to truly understand if it’s worth the cost. In this article, we’ll go through a few common questions you can ask yourself when deciding whether supplemental insurance is right for your needs. 

Do I have enough life insurance? 

Even though your employer might provide you with a life insurance policy, it’s often not nearly as much as you’ll need. Typically, employer policies are just enough to cover the cost of the funeral or one year’s salary.   

Many financial experts recommend that every family should be covered for at least several times that of the annual household income. Unless you have a separate private policy to go along with your employer policy, then you may want to consider buying some additional coverage. 

Fortunately, because companies buy group policies, they’ll often get a discount when compared to an individual plan. So, it may be worth it to check the price, shop around, and add the additional coverage if it makes financial sense. 

What if I get injured? 

While not every accident results in death, many are serious enough that they can put you out of work for a significant amount of time. Even though many U.S. workers are protected under the Family and Medical Leave Act (FMLA), some may not know that this time off may be unpaid.   

There is the possibility to apply for disability through Social Security. However, many applicants find that it’s harder to qualify for than they might expect. As many as 70 percent of all claims are denied each year.1 

So, unless your employer already provides you with some form of disability insurance, then this is something you may want to add. This is a benefit that can replace between 60 and 70 percent of your income while you’re not able to work, depending on the plan.2  

Disability insurance comes in two forms: short‐term and long‐term. Short‐term disability is intended to protect you for up to 6 months, while long‐term disability is designed to provide coverage for situations beyond 6 months and up to several years. 

Again, you can buy disability insurance on your own. But if your employer gets a group discount, it may be advantageous to upgrade your policy through their provider if applicable. 

Do I have any pre‐planned medical procedures? 

If you or a family member want to be better prepared in case of a hospital stay or surgery, it may make sense to add a plan like hospital indemnity insurance to your benefits package. 

A hospital confinement indemnity insurance policy helps with expenses for extended hospital stays on top of your medical insurance coverage. Typically, cash benefits are paid directly to you, unless otherwise assigned, to help with expenses so you can focus on recovery. Even if your major medical insurance pays for the hospital stay, you’ll still be paid for covered benefits.   

Depending on your deductibles, the additional policy may be well worth the cost. However, you’ll want to be sure to read the fine print and read over the limitations and exclusions, such as pre‐existing conditions.   

1 Top 5 Reasons Why Disability Claims are Denied (Updated for 2022) – Disability Benefits Help. Accessed: May 5, 2022. 

2 Your most valuable workplace benefit may be the most overlooked – Accessed: May 5, 2022. 

Coverage is underwritten by Aflac. In New York, coverage is underwritten by Aflac New York. This is a brief  product overview only. Coverage may not be available in all states, including but not limited to ID, NJ, NM, NY, or  VA. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost.  Plans and riders may also contain a waiting period. Refer to the exact plans and riders for benefit details, definitions,  

limitations and exclusions. For availability and costs, please contact your local Aflac agent/producer. Short-Term  Disability: In Idaho, Policy A57600IDR. In Oklahoma, Policies A57600OK, A57600LBOK. In Virginia, Policies  A57600VA, A57600LBVA. Hospital: In Idaho, Policies B40100ID & B4010HID. In Oklahoma, Policies  B40100OK & B4010HOK. In Virginia, B40100VA & B4010HVA.  

Content within this article is for informational purposes only and does not constitute legal, financial or medical  advice regarding any specific situation. Aflac cannot anticipate all the facts that a particular employer will have to  consider in their benefits decision-making process.  

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