Looking For Secondary Health Insurance?

The only thing certain is change and with that there is always a certain risk. Insurance coverage is sought by millions round the world to best protect against unforeseen detrimental events.

Usually people select a primary insurance in accordance to their needs and budget and remain satisfied. However, sometimes an accident or an event in the life of someone you know may cause a rethink.

The need for secondary health insurance coverage plans arises when:
 

  • The primary health plan coverage is believed to be inadequate.

 

  • When there is an expectancy of future expenses which might not get covered by the existing cover a supplementary health insurance is often sought.

 

  • Long term hospitalisation or extended spells of medical care are foreseeable. The secondary health insurance plan kicks in once the primary plan’s deductibles start gnawing away at your health care budget.

 

  • Coverage limits or additional charges not covered by the primary health insurer occur.


There are a number secondary health insurance companies today which provide for the coverage gaps in the employer’s plan or the primary coverage policy. However one must be vary of:
 

  • It often happens that couples choose to go for family coverage through their employer plans which allows for additional coverage for items not covered in the plan of the other spouse. This becomes extremely expensive and is best avoided.

 

  • Secondary health insurance also proves essential in case certain types of family members though dependent are not covered by the employer or primary plan.

 

  • Both primary and secondary policies should not be covering the same things, else the objective of a second or supplemental plan gets defeated.

 

  • It is very essential that there is a good coordination between the secondary and the primary insurance such that the secondary cover is essentially for the items not covered by the primary plan.


Benefits of having a primary and secondary health insurance is that the additional cover helps reduce the budgetary challenges due to ever expanding out of pocket expenses as well as is a step towards a more broad coverage.

It plays a significant role in shouldering the co insurance and deductibles. However, it is always wise to keep reviewing one’s stance here. It is often found that the supplementary cover premiums are way high as compared to benefits afforded.

One should also designate which company is the primary and which is the secondary beforehand so as to avoid payment delays and unnecessary confusions later. One must also ensure that the secondary plan is not outside tax exemption umbrella and hence a local agent with experience should ideally be hired.

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