Supplemental Insurance
What is Supplemental Insurance?
Supplemental Insurance Policies provide cash, that is paid directly to the policyholder, to help pay expenses not covered by your primary health insurance. It helps cover what primary health insurance doesn’t provide such as deductibles, co-insurance, labs, mortgages, groceries, and other everyday expenses.
Supplemental Insurance can be obtained through your employer if offered and may be provided by your employer as a part of its benefits package or make available to the employee at its personal costs or via individual plans offered by various insurance companies.
How cash benefits from Supplemental Insurance can be used
| Pay for out-of-pocket medical expenses | Supplement daily living expenses |
| Cover hospital deductibles and co-pays | Pay mortgage/rent |
| Pay for services not covered by health insurance | Cover child/adult care |
Optional Features and Services
| HSA Compatible benefits | Coverage options for spouse and/or child(ren) |
| Health screening benefit | Continuation of coverage |
| Express benefit | Portability |
| Child sports injury benefit |
Type of Supplemental Insurance
| Cancer Insurance | Critical Illness Insurance |
| Disability Income Insurance | Hospital Indemnity Insurance |
| Life Insurance | Dental Insurance |
| Accident Insurance | Vision Insurance |
| Group Life & Health Insurance | Long-Term Care Insurance |
Business Owner’s Need for Supplemental Insurance
Owning your own business provides for your life earnings, enjoyment, and a satisficing experience of your life. A business owner can easily get lost in the day-to-day activities of running your business. Consequently, business owners put off the need to formally consider contingency plans for unforeseen situations in their life’s journey. Beyond the basic requirement of production to produce income, have you the business owner considered how to protect the business against events that may threaten the future of your business?
Owners Disability
Whether you are sole proprietors and you are the only employee or several employees. Should you become temporarily disabled and there is an income shortfall, consider a business overhead insurance plan that will provide fund needed to help covers expenses for employees’ salaries, taxes, employee benefit, rent, mortgage, and utilities.
Employees Benefits
https://www.nationwide.com/lc/resources/investing-and-retirement/articles/what-is-key-person-insurance
Coronavirus brought about to reality of the value of employers to provide employees benefits that are necessary for them and their family life and thus make them feel better about their employment and make them more productive. Have you had a competitive benefits package that could reduce expenses? The key question is, are the employee benefits being provided helping the business to keep and attract new employees?
Key Personnel
When an employee is essential to the ongoing continuation of the business, the employer can be provided an incentive to remain an employee of the business with a Key Person insurance policy. Typically, a key person is often the business owner but could also be someone who has a highly specialized role or is responsible for bringing in a large share of sales. That’s why it’s important to secure an insurance policy that will provide cash funds to a business if its owner or another significant employee passes away. A policy can also include a rider for disability coverage to help if a key employee is disabled.
Life Insurance worthiness as an asset
Today use Life Insurance provides features that provide compelling reasons to be aware of why it is an asset to consider acquiring.
- Living Benefits for health contingencies of Terminal Illness, Critical Illness, and Chronic Illness.
- Cash value accumulations are indexed (not invested in financial markets) to financial markets performance such as the S&P 500.
- Cash accumulation values can be used tax-free for business expansion.
- Cash accumulation values can be used tax-free when other investments are undervalued. Would you want the stability to access tax-free life insurance values instead of disposing of undervalued assets in financial markets prevailing currently from March 2002 – August 2022 – and likely into the unknown future?
- Death Benefit can help collateralize financing of expansion projects.
- Cash value accumulations can be used to provide owners with tax-free retirement income.
- The guarantees of cash value accumulation provide the diversification that is integral to purposeful planning.
Business Continuation Planning
An agreement between owners that allows the owners or the business to buy out a co-owner’s share if that owner retires becomes disabled or dies is known as a Buy-Sell Agreement. This is a smart way for the owner to ensure their own value is passed on to their families with predictable values and an agreed process. Otherwise, your new inherited partner’s ideas and values of the business might conflict with the previous business plans. To ensure surviving owners have the cash liquidity to execute the Buy-Sell Agreement life insurance is used to ensure the liquidity to consummate the buy-sell agreement plan.
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