Skip to main content
Securian Financial Home

Supplemental health insurance benefits

How it works to protect income and avoid debt

Supplemental health insurance can protect your financial security.

In 2021, health spending in the U.S. increased by 2.7 percent. Americans as a whole paid $4.3 trillion on health expenses, and $12,914 per capita.1 As health care costs rise, employees can look to their employers for options to help with unexpected medical expenses.

An unexpected accident or serious illness can derail your family’s finances. Having additional financial protection with supplemental benefits through your employer can help you avoid a worse-case scenario.

Supplemental benefits are “in addition to” and not “in place of” medical health insurance, which can have costly deductibles and co-pays. When that happens, supplemental insurance can step in and help alleviate some of your financial burden.

For example, approximately 36 million Americans are admitted to the hospital every year. Patients who have a three-day hospital stay can expect it to cost $30,000, with out-of-pocket expenses totaling $6,000. (That’s with regular health insurance.) This can turn into a major financial burden. That’s because the majority of Americans (56 percent) don’t have $1,000 (in their savings) to cover an emergency expense.2

Supplemental health insurance provides additional coverage for out-of-pocket expenses and unexpected costs (like a visit to the hospital) that may not be covered by your main health plan. It helps fill in those gaps.

The cash you receive may be doled out in one lump sum or in incremental stages for the policyholder to use at their discretion.

Types of supplemental health insurance benefits

Critical illness insurance

What it is: It provides a lump sum cash payment if you (and in some cases, your dependents) are diagnosed with a qualifying condition. You can use the money for groceries, child care, rent, or other living expenses.

What it covers: Conditions that critical illness insurance covers includes cancer, heart attack, stroke, organ failure, coma, paralysis, and loss of vision, hearing, or speech.3

Hospital Indemnity

What it is: Hospital stays are expensive — even with primary health insurance. In fact, your benefits can run out.3

Hospital indemnity insurance provides a predetermined lump sum cash payment for when a serious accident or illness lands you (or your dependents) in the hospital. You can use the money however you wish, such as for groceries, lawn service, or to cover other living expenses.

What it covers: Hospitalization due to serious injury or illness.


What it is: Accidents are expensive due to emergency and ambulance costs, hospital expenses, and rehabilitation and therapy. During recovery, you might be unable to work, drive a car, take care of chores around the house, and more. An accidental death can leave dependents in a precarious financial situation. An accident policy can provide money to pay for extra expenses or to cover a lump sum payout, much like a life insurance death benefit.3

What it covers: An accident that leaves you with a broken bone, concussion, or even paralysis are examples of covered conditions.

Accidental death and dismemberment (AD&D)

What it is: Coverage for fatal and nonfatal accidents that’s in addition to life insurance. The money can subsidize lost income, pay for emergency medical costs and other expenses, and anything else.

What it covers: Loss of life and/or loss of limbs, fingers, eyesight, and permanent paralysis due to an accident.

Nobody knows what the future holds. Supplemental health insurance can give you peace of mind when preparing for life’s unknowns. Talk to your employer to find what options they have available to you to help protect yourself and the ones you love.

Like what you’re reading?

Get articles like this delivered directly to your inbox. 

Sign up

Limitations and exclusions apply. Each of these voluntary policies have exclusions, limitations, reduction of benefits, terms under which the policy may be continued in force or discontinued. For costs and complete details of the coverage, contact Securian Financial Group.

Product availability and features may vary by state.

1. “Trends in health care spending,” March 20, 2023,

2. Neely, Susan K. “Completing life’s puzzle,” February 15, 2022,

3. Rivelli, Elizabeth. “What is supplemental health insurance?” August 10, 2022,

DOFU 9-2023