5 Health Insurance Products You Didn’t Know You Needed

It’s easy to forget the importance of health insurance until you need it. By then, it’s too late to buy the health-insurance products that you didn’t know you needed. No matter how healthy you are, health insurance is a critical component of any financial plan. It protects your assets and your health. Here are five health insurance products you might not have thought about.

Long-term Disability

Did you know your chances of suffering a long-term disability during your working years is three times more likely than dying? Despite this, many people carry only life insurance, which can be a costly mistake. When income ceases due to injury or illness, savings run out and bills pile up fast. Social Security Disability only pays if you are unable to work in any capacity. The amount may also be substantially below your income, and payments start after six full months of disability.

A private long-term disability policy covers you if you can’t work in your specific profession anymore. It also provides 66 percent of your pre-disability income. Because benefits are tax-free, this amounts to your total compensation. Since payments continue until you reach age 65, you are fully protected until retirement.

Short-term Disability

Long-term disability kicks in after 90 days or 6 months, depending on the policy. Short-term disability covers the time until the long-term takes effect. Should you break a leg and not be in the theatre, you would rely on short-term disability for your recovery period.

Health Savings Account (HSA)

HSAs are tax-deductible savings accounts, similar to IRAs. You use the funds for most any healthcare expense, from premiums to copays to prescriptions. If you have a high-deductible plan, beef up your HSA to cover unexpected out-of-pocket costs. If you have excess funds, you can add them to your retirement.

Dental Insurance

Many people buy a healthcare policy and forget about dental coverage. Without dental coverage, fillings, crowns, and dentures can add up to thousands of dollars in out-of-pocket costs. Most policies also cover cleanings and sealants, which protect your teeth and gums.

Long-term Care Insurance

If you’re over 60, you need long-term care insurance now. This covers you if you have to go into assisted living or a nursing home. Without this coverage, the costs of nursing care can be thousands each month. These expenses can quickly wipe away a nest egg, forcing you onto Medicaid to cover nursing home costs. Regulations allow you and family members to keep only a relatively small amount of your savings once on Medicaid. If you want to have control over where you get nursing care and leave money as an inheritance, you need long-term care insurance.

Healthcare costs can quickly eat away savings. The best-laid financial plans can go awry from a single illness or injury. To preserve your assets, purchase the right financial protection. For more information on healthcare and medication, check out our other articles!


The Simple Dollar



Simon Greenberg

Simon is a health tech enthusiast who believes information technology can bring major improvements in healthcare cost and quality. He is currently working on ways to improve how we can connect and interact with our healthcare system. You can find him on and .

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