posted by Heather Jerbi, Executive Director, Product Policy, AHIP
on May 1, 2018
One challenge people often face is deciding whether to purchase insurance coverage they hope to never have to use. Ending up in a hospital, facing a significant injury or illness, or worrying about mounting medical debt are issues no one wants to contemplate. But having supplemental insurance coverage—hospital indemnity, accident-only, critical illness—can protect individuals by filling the gaps in their primary health coverage and providing funds to maintain their financial security.
And for the over 25 million people with a supplemental insurance policy, it provides peace of mind knowing they have the coverage if they need it.
This peace of mind—which comes with being able to access high-quality care when it’s needed—is a primary reason beneficiaries are happy with their supplemental insurance coverage.
Let’s dive into the findings from a recent survey by Global Strategy Group on behalf of AHIP. It shows beneficiary satisfaction for hospital indemnity, accident-only, and critical illness plans is 96 percent, 98 percent, and 97 percent respectively. In other words, nearly 10 out of 10 people are satisfied with their supplemental coverage.
But it’s not just numbers on a piece of paper. The people who have had to rely on this coverage in the wake of an accident or illness want to tell their stories. Customers send letters and calls to their insurance providers, expressing how supplemental coverage has made a difference to their lives.
It is clear that our customers value the benefits of Supplemental Insurance and the peace of mind it provides them,” said Michelle Muirhead, Assistant Vice President, Government & Industry, Physicians Mutual Insurance Company.
The value of supplemental plans also stems from financial security and protection. Half of the survey respondents indicated they would have had to take on financial debt or experienced some other financial hardship were it not for their supplemental plan.
“Voluntary insurance like Aflac is different from major medical because it helps cover the out-of-pocket costs—above and beyond what major medical pays—that continue to add up even if a policyholder is unable to work and collect a paycheck,” explained Matthew Owenby, Aflac’s Chief Human Resources Officer.
“Studies show that Americans are by and large ill-prepared if the family breadwinner misses work for a sustained period of time. In fact, 65 percent of employees would only be able to pay less than $1,000 for out-of-pocket expenses if an unexpected serious illness or accident was to occur, according to the 2017 Aflac Workforces Report. This makes voluntary supplemental insurance a vital part of anyone’s insurance planning.
Other key highlights from the study include: