Lisa Zamosky, of Reuters, elaborates, on the rising popularity of supplementary insurance (“overall sales rose 11 percent between 2011 and 2012” as reported by LIMRA). Due to the popularity, it is clear that employers are beginning to see the value in offering these types of benefit programs to their employees.
Zamosky’s most important point in the article is that the consumer (an employer considering options for their employees) must understand exactly what supplementary insurance intends to do. She notes that
“[people] often fail to understand that critical illness and accident plans are intended to supplement, not take the place of major medical insurance that pays a portion of medical procedures, doctors’ visits, equipment and hospital stays.”
While some employees may see some benefit, such as smokers and those with a family history of cancer and other serious medical issues, this does not mean that all policies should be thrust upon the employee without much guidance.
Ultimately, the consumer should consider what they need and if the extra cost is something they should weigh into their budget. An employer should be aware of the difference between medical insurance and supplemental policies and consider this in presenting information to employees.
Image courtesy of Alex E. Proimos.