Supplemental Health Insurance? (Accident, Cancer, Hospitalization, etc.)

[TopHatFox]

So LT disability insurance is a given with how cheap it is and how amazing it would be to have 2/3’s income after some disability before FI.

But what about supplemental health insurance, like accident, cancer, and hispitalization insurance?

Accident: I don’t really get it, isn’t accident insurance basically the same thing as health health insurance? Am I covered by health insurance if I fall off my bike?

Cancer and hospitalization: same here, why the need for the extra insurance. Is it to have lower bills if one does get cancer and hospitalization? I suppose cancer one can minimize, but hospitalization...maybe by wearing a helmet.lol

[daylen]

Insurance is a hedge against severe risks. Insurance products are like cable packages, they are meant to stratify individuals with different incomes (while ignoring savings).

What risks are you worried about? ..how frequently are they likely to happen to you? ..how much would they cost you? ..could you afford to self-insure?

Probably not worth it unless you want to play against the actuaries on their homefield.

[EdithKeeler]

So LT disability insurance is a given with how cheap it is and how amazing it would be to have 2/3’s income after some disability before FI.

Well, if you were truly disabled, it wouldn’t really be “awesome.” Being disabled could really fuck up your plans. Remember: among the tenets of ERE is being able to do things yourself, not having to pay people to do stuff, etc. if you were truly disabled for a while, you may not be able to bike/walk to the store and might have to pay someone. Other costs may go up—you may need supplies that aren’t covered by your insurance. You might have to travel to another city for treatment.

I think LT disability insurance is good to have. A cancer policy is money down the toilet—the chances of having to use it are slim and the cost is fairly high with minimal benefit. An accident policy is about the same, and yes, your health insurance would cover treatment injuries from an accident. Accident insurance may give you some income and essential services coverage, but too expensive for a limited benefit. IMHO as an insurance professional!

Oh, and when you buy disability insurance, find out if it’s taxable or not. There are different kinds.

[TopHatFox]

@Edith, I got the LT disability offered by the university @10/mo, no idea if that income would be taxable or not.

If I hit someone on my bicycle, does my health insurance cover their expenses...or should one also carry umbrella insurance and a good lawyer? lol

What about hospitalization insurance, is that any good?

[EdithKeeler]

@Edith, I got the LT disability offered by the university @10/mo, no idea if that income would be taxable or not.

If I hit someone on my bicycle, does my health insurance cover their expenses...or should one also carry umbrella insurance and a good lawyer? lol

What about hospitalization insurance, is that any good?

You'd have to talk to your employer about the taxability of the disability insurance. My employer offers 2 choices--one where benefits are taxable, and one where it's not. (I think it's because they supply some base coverage, and then I buy some optional extra coverage) Here's a little bit of info, but it not exhaustive. https://www.ameriprise.com/research-mar ... insurance/

No, your health insurance doesn't cover anyone but you. Health insurance is is a first party coverage--it only covers the policyholder. If you had a wife or kids, you'd likely be offered the opportunity to buy coverage for them thru your employer.

If you want coverage to cover someone you hit with your bicycle, you want liability insurance. That's not something that's typically offered thru an employer--you'd want to speak to an independent insurance agent. Liability coverage covers certain situations (not all--there are exclusions) where you are responsible for injuring another person or damaging their property. It covers the costs of the claim (ie, the person's damages or injuries), and also covers your defense costs if you're sued as a result of your negligence for a covered claim.

I don't know what "hospitalization insurance" is. It looks like it just covers hospital costs, only. Typically your health insurance would cover a stay in the hospital, so I can't think why you'd need hospitalization coverage, too.