Protect Supplemental Benefits
40% of middle-class households are concerned about a health event and the stress it would place on their finances (ACLI Financial Resilience Index and Survey). Supplemental benefits are a piece of the financial protection puzzle to help protect household budgets from unexpected health related expenses.
What Are Supplemental Benefits?
Even with medical insurance, a sudden illness or serious medical issue often results in unexpected costs for families. Insurance from supplemental benefits can provide cash that fills-in the gaps not included in your primary medical insurance coverage. Some plans may include:
- Accident-only: Financial protection for unexpected, out-of-pocket costs like deductibles and uncovered services needed as the result of an accident.
- Critical Illness: Benefits triggered by medical events due to major illnesses.
- Specified Disease: Pays benefits when an individual is diagnosed with specific medical conditions listed in the policy.
- Hospital Indemnity: Added protection from out-of-pocket costs incurred due to hospital admission, outpatient or office-visit care.
Why Are Supplemental Benefits Important?
Workers value financial products that protect their financial security. 86% of employees see a need for voluntary [supplemental] insurance and 93% of surveyed employees stated they chose to enroll in voluntary insurance because they believe the policies ‘help protect their financial security’ (Aflac WorkForces Report).
Medical debt impacts over half of American adults who have insurance (AHI). 46% of Americans with medical debt say it’s preventing them from buying a home, while 43% can’t save for retirement while trying to pay off their medical bills (AHI & Contemporary Pediatrics).
What Should Policymakers Do?
It is important that supplemental benefits remain accessible and affordable.
Policymakers and the insurance industry should work together on effective ways to offer financial protection products while encouraging modernization to meet evolving needs, as the costs associated with being sick or injured often change. Learn more at ACLI.com/supplemental-benefits.
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