Financial emergencies – like unexpected expenses or the loss of income – create stress that impacts both your wallet and your well-being. That’s why experts recommend you keep at least three months of expenses saved1 to help you through job loss, health issues or other unexpected expenses. Yet only 16% of Americans have between three and five months of expenses saved, the lowest percentage since 2018.1
The financial stress and mental health connection
It’s no wonder that people are stressed about money. An uncertain economy and high inflation rates over the past few years have taken their toll, causing worry and impacting saving. And unemployment is expected to hit 4.4% by the end of 2025.2
The stress is resulting in a mental health crisis that greatly affects people’s health and well-being. A staggering 73% of Americans rank their finances as their number one stress in life, according to a Capital One Credit Wise survey.3
Take advantage of financial wellness benefits
One way to be better prepared for financial emergencies and get on track for financial wellness is to purchase insurance to help create a safety net.
Employers often offer their employees insurance and financial wellness benefits, along with investing vehicles like 401(k) plans, to help them better manage their finances. These benefits often include supplemental insurance, such as critical illness insurance, hospital indemnity insurance, and accident insurance.
Supplemental health insurance fills the gaps
While traditional health insurance covers basic medical care, supplemental health insurance fills critical gaps by providing cash benefits when you need them most. These policies may complement your existing major medical coverage and help protect your financial stability. Here’s an overview of how they work:
- Accident insurance covers costs related to accidental injuries. It typically includes benefits that can help with emergency room costs, ambulance costs, everyday living expenses, rehabilitation and therapy costs.
- Critical illness insurance provides lump-sum payment for serious diagnoses like cancer, heart attack, stroke or major organ failure.
- Hospital indemnity insurance pays cash benefits for hospital stays and can be used to cover things like groceries, lawn service, pet sitting and more.
Take action for better financial outcomes
Review your current coverage gaps and explore supplemental options available through your employer. Many employers offer supplemental health insurance options during open enrollment at group rates, making coverage more affordable than individual policies. These benefits are typically payroll-deducted and cost-effective additions to your financial protection strategy.
A small monthly premium can help provide additional financial protection when unexpected events occur.
