Title card with ducks
Health Insurance,  Saving Money,  Stop Being Broke

Supplemental Health Insurance: Helps Prevents Debt

ducks in the garden

Sit in front of the TV long enough and you will eventually come across a commercial with a duck that talks about Aflac.  Studies show most people have no clue what Aflac is attempting to sell other than the duck. Let me clue you in on what they are selling. The duck attempts to sell you a type of insurance called supplemental health insurance. If you want to stay out of medical debt, supplemental health insurance is something that you should strongly consider.

Today’s Contents:

Layman’s Guide To Health Insurance Terms

Before we begin, because health insurance is a complex topic to understand, here are some terms you have to understand:

  • Premium: what you have to pay each month
  • Out of pocket costs: Any additional costs you have to pay in addition to your premium
  • Deductible: a type of out of pocket cost that you must pay before your insurance starts paying
  • Coverage: What your insurance covers. This can speak to the type of procedures and/or how much you pay for your insurance. 

What is supplemental health insurance?

Supplemental health insurance is exactly what it sounds like. Supplemental health insurance supplements your regular health insurance. Depending on how much you pay, it can pay anywhere from some to all of your costs that your regular health insurance doesn’t pay for. Additionally, some supplemental health insurance covers diseases and illnesses that your regular health insurance doesn’t cover. Common examples of supplemental health insurance coverage include cancer coverage or dental and vision coverage.

Is supplemental health insurance right for me?

Supplemental health insurance is likely right for you if you are under 65 and don’t have enough money to cover your maximum out of pocket costs. Remember how health insurance isn’t designed to prevent you from being sick, but rather to prevent you from financial catastrophe? That is becoming less true over the years. Over the past decade, health insurance premiums and deductibles have quickly risen each year. While health insurance premiums and deductibles have increased continually, people’s wages have not increased. As of now, health insurance still does prevent you from financial catastrophe, but it is much less likely to prevent you from a financially prickly situation. It is making more and more sense for people to buy supplemental health insurance.

How can I get supplemental health insurance?

If you are 65 and older, with Medicare, you are reading the wrong article. We currently have our trained monkeys writing up a short article for you.  

google on laptop

Supplemental health insurance can be bought in two ways. The first way is through your employer. Some employers offer supplemental health insurance to augment their regular insurance offerings. Generally, employers don’t offer supplemental insurance. If that is the case for you, then you will need to resort to the second method. The second method is you will need to resort to looking up supplemental health insurance yourself using the ol’ trusty Google. When it comes to looking for supplemental health insurance, Dave Ramsay’s rule of shopping insurers is incredibly applicable. Do not look for insurance carriers that have an animal, an actor, or any substantial commercial campaigns. Your supplemental health insurance premium is going to be higher because you have to pay for their major marketing pushes.

What should I look for in supplemental health insurance?

Supplemental health insurance has many choices. You can choose from supplemental health insurance that covers certain types of illnesses, covers hospital stays only, or covers your entire out of pocket costs. What you should look for in supplemental health insurance really is dependent on your financial situation and your health insurance. While each persons’ situation is different (and should contact health insurance specialist before making any choices), here is a broad guideline:

Financial Situation Supplemental Health Insurance Type You Should Look For
Poor to Fair (Lives paycheck to paycheck to has less than 3 months of emergency fund money)/ Not enough money to cover out of pocket costs Covers your entire out of pocket costs
Good (Has 3-6 months emergency fund)/ Able to have cash on hand to pay for out of pocket costs. Covers anything your health insurance does not cover. It is also a good idea to consider partial coverage for some of your more expensive out of pocket costs (hospital care)
Excellent (Has 3-6 months emergency fund and considerable income) You should consider coverage for high cost illnesses like cancer if your health insurance doesn’t cover it.
Reminder: These are all the rough guidance and you should consult with a health insurance specialist prior to making any health insurance or supplemental health insurance decision
Why More Coverage For Someone in A Poor to Fair Financial Situation?

For people in a Poor to Fair financial situation, you are living in a very scary financial situation. It is better to have more coverage than pay for it when you do have an illnesses requiring you to pay for healthcare. Supplemental health insurance is fairly cheap as well, a 30 year old can expect to pay around $30 per month for their full coverage supplemental health insurance. Too often I find people who attempt to save money on their premiums and get struck with a health disaster that they can’t pay for. This may seem elementary, but the best way to stay out of debt is to not get into debt.

“The best way to stay out of debt is to not get into debt”

Why Less Coverage For Someone in Good to Excellent Financial Situation?

For people in a good to excellent financial situation. You are able to afford your health insurance. There is no sense in buying more insurance to cover a situation you can currently cover. You should only get supplemental health insurance for anything that your health insurance does not cover.

Parting Words For Supplemental Health Insurance

Supplemental health insurance should be seen as a band-aid fix to your financial situation. Supplemental health insurance will prevent your poor financial situation from getting worse. Similar to a band-aid, you will stop using supplemental health insurance at one point because you will be in a better situation. That is – as long as you keep reading the Why You’re Broke posts religiously, tell your friends to subscribe to this website, and keep working on your financial goals. One additional note: Do not just get supplemental health insurance. Supplemental health insurance is designed to supplement your regular health insurance.


The material and information contained on this website is for general information purposes only. You should not rely upon the material or information as a basis for making any business, legal, or any other decision. While we endeavor to keep the information up to date and correct, Bunny Hops To Wealth makes no representations or warranties of any kind, expressed or implied about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information in the above post. Any reliance you place on such material is therefore strictly at your own risk. Prior to making any health insurance decision, make sure you consult a health insurance expert before making any changes. 

If you would like to read more, please subscribe. If you have any questions, please reach out to us at mrandmrshops@bunnyhopstowealth.com and read our story here.

Please follow and like us:


  • Jim

    Hi! I’ve been following your blog for a long time now and finally
    got the courage to go ahead and give you a shout out from Lubbock Texas!
    Just wanted to mention keep up the excellent work! I have been browsing on-line more than 3 hours
    today, but I never found any attention-grabbing article like yours.
    It’s lovely worth enough for me. Personally, if all
    site owners and bloggers made just right content material as you did,
    the internet might be a lot more helpful than ever before.
    Hi there! This article couldn’t be written any better!
    Looking through this article reminds me of my previous roommate!
    He constantly kept talking about this. I will forward this information to him.

    Pretty sure he will have a very good read. I appreciate you for sharing!

    • Why You're Broke

      Thanks for the question Victoria! I want to preface that I don’t personally use supplemental health insurance. Each market is different, so what would be great in one place might be terrible in another area. However, a good starting point would to look into your current health insurance company’s offerings and see if you can get a bundling discount of sorts.

  • Sid

    Hey! This post couldn’t be written any better!
    Reading through this post reminds me of my previous room mate!
    He always kept chatting about this. I will forward this article to him.
    Pretty sure he will have a good read. Many thanks for sharing!

Leave a Reply

Your email address will not be published. Required fields are marked *


Want to help others avoid being broke? Spread the word :)

Follow by Email