Supplemental insurance products are designed to fill gaps in your primary health coverage. They pay cash benefits directly to you, not to providers. But which ones are actually worth buying?
Hospital Indemnity Insurance ($20 to $60/mo)
Worth it if: You have a high-deductible health plan or Medicare Advantage. Pays cash when hospitalized, regardless of other coverage.
Critical Illness Insurance ($25 to $80/mo)
Worth it if: You have a family history of cancer, heart disease, or stroke, or if a major diagnosis would cause financial hardship. Pays a lump sum at diagnosis.
Accident Insurance ($15 to $40/mo)
Worth it if: You have an active family, kids in sports, or a physical job. Pays for injuries from accidents - broken bones, ER visits, etc.
Cancer Insurance ($20 to $60/mo)
Consider: Whether critical illness insurance (which covers cancer PLUS other conditions) might be a better value. Standalone cancer policies make sense if cancer is your primary concern due to family history.
The Golden Rule
Only buy supplemental insurance if it would prevent financial hardship in a specific scenario. If you can comfortably cover a $5,000 to $10,000 unexpected expense from savings, you may not need these products.