A friend recently suggested that I get a Secondary Health Insurance policy. What is it? I’m already getting a good health policy from my employer here in San Francisco, so do I really need one?

Celine,
San Francisco, CA

Answer:

Good question! a Secondary Health Insurance policy is the type of policy arrangement established between two health insurance providers to avoid redundant coverage, dual cost to the health insurance companies, and overpayment of benefits if two individuals (say a husband and wife) are enrolled under the same group health insurance policy (usually the one provided by the employer).

For example, before the wife can make a claim and collect benefits from her health insurance, her husband’s health insurance coverage (that would be listing her as a dependent) should have been maxed out on her first, any remaining costs is then charged into her own policy, and vice versa. This kind of plan may also apply to an individual health insurance policy you buy to compliment the coverage you’re already get from your employer.

So why invest on a secondary health insurance policy? Especially if you’re employer is already giving you a good one? A secondary health insurance can be an excellent buffer, and may just end up saving you from incurring debts worth thousands of dollars, should you’re primary health insurance policy fail, refuse, or is inadequate to pay for your medical needs. Your health is your biggest asset and you never know what might happen to cause you to lose it in an instant.

Today’s economy, with rising lay-offs and job cuts, a secondary health policy becomes even more important. Can you imagine what would happen if you lose your job (and the coverage you’re getting from it) and get seriously injured or sick? How would you afford the bills and expenses you’ll be incurring, and the loss of income?

These days, it is no longer uncommon to see people paying for secondary health insurance. It adds more security and can give you the peace of mind knowing you and your dependents are protected should your medical and health needs and expenses exceeds what your employer’s group/primary policy can cover. The Internet is a great place to start looking for excellent/affordable health insurance policy today.