Ancillary health insurance is a supplemental type of health insurance coverage that complements primary health plans. Often referred to as “voluntary” benefits, these benefits provide additional coverage above and beyond what traditional medical plans might pay.
Types of ancillary insurance could include:
- Short-Term Disability
- Critical Illness
- Hospital Indemnity
According to the International Foundation of Employee Benefit Plans, 9 in 10 employers are offering voluntary benefits, with life insurance being the most commonly offered. Products like accident, critical illness, and hospital indemnity have been seeing a surge in popularity, in part due to increased concerns about inflation and recent experiences with expensive hospital stays during the COVID-19 pandemic.
Accident, Critical Illness and Hospital Indemnity provide financial protection for employees by paying cash benefits when an insured experiences a covered accident, hospital stay or critical diagnosis. These cash benefits can be used to pay for medical bills like deductibles and copays, or other needs as an insured recovers from their ailments.
When the typical American has $1,200 in their savings, paying a whopping medical bill or hitting a high deductible can easily wipe out a nest egg, leaving employees – and their wallets – vulnerable.
At BCS, we believe Accident, Critical Illness, and Hospital Indemnity can be a great solution for employers to offer additional benefits and peace of mind in the event of a catastrophic medical event, often at no cost to the employer group. With customizable options to fit a variety of needs, BCS can help you easily implement these ancillary products for your employer groups. Contact BCS today to learn more!