How Does Supplemental Insurance for Retirees Work?


Traditional health insurance and Medicare can help retirees cover many healthcare costs. However, these may not cover the full costs or may exclude certain expenses. Supplemental insurance for retirees can help fill these gaps, allowing you to receive the care you need while helping to maintain financial security. This article will highlight some benefits of supplemental insurance for retirees and cover some policies to consider. 

Benefits of getting supplemental insurance as a retiree 

Here are three reasons retirees should consider supplemental insurance: 

1. Helping to fill coverage gaps 

A common use for supplemental insurance is to help fill coverage gaps, including deductibles, copays, or services not fully covered. This is especially important for diagnoses of major illnesses that are costly to treat. For example, cancer treatments can be costly. Health insurance and Medicare may not cover all these costs, potentially straining retirement assets. Cancer insurance can reduce this coverage gap by paying out a cash benefit that you can use as you see fit, such as paying for care or covering living expenses.  

2. Help create financial security 

Supplemental insurance can help retirees manage medical bills more easily, helping to add a layer of financial security. For instance, perhaps you suffer an injury that requires an extended hospital stay. These costs can add up. However, a hospital insurance policy can provide you, unless otherwise assigned with a cash benefit for these costs. This helps you avoid debt and preserve your savings. 

3. Gain access to specialized services 

Many supplemental insurance policies help cover services outside traditional healthcare and Medicare. For instance, long-term care insurance provides you with regular payments to help cover relevant costs, such as nursing home stays.  

Types of supplemental policies for retirees to consider 

Here are some additional types of supplemental policies that could suit many retirees: 

1. Accident insurance 

Accident insurance helps protect you and your loved ones financially if you are injured or disabled in a covered accident. It can help pay for unintentional bodily injuries.  

  •  If you experience a qualifying injury from an accident, you can receive a cash benefit to help pay for care costs, such as ambulance rides, hospital stays, and treatment. It can also reduce your need to draw on savings to cover living expenses. 

2. Dental, vision, and hearing insurance 

Individual health plans typically don’t cover dental, vision, or hearing expenses. Medicare Advantage provides some coverage, but retirees may want more if they have more ongoing needs in these areas. Fortunately, supplemental policies exist for each of these needs. Here’s what each can help cover: 

  • Dental insurance: This policy helps cover routine care, along with basic and major services, from fillings to oral surgery. 
  • Vision insurance: These policies may offer coverage for routine care, and corrective vision treatment or materials.  
  • Hearing insurance: These policies help reduce the costs of hearing checks, hearing aid fittings and devices, device repairs, and batteries. 

Some insurers may let you bundle them into one policy to save on premiums and make policy management easier.  

3. Final expense insurance 

Final expense insurance is a form of permanent life insurance designed for policyholders to help their loved ones cover the policyholder’s end-of-life expenses, such as funeral costs and medical bills. The payout benefit this policy offers can help relieve financial strain during a time of grieving. 

Death benefits for final expense insurance are smaller than traditional life insurance policies. However, premiums may be favorable, and you can enjoy lifelong coverage. Furthermore, retirees gain access to a cash value growth component that grows with each payment and could earn tax-deferred interest. 

The bottom line 

Although Medicare and private health insurance go a long way, they don’t cover everything. Supplemental insurance policies can help you fill coverage gaps, access specialized services, and offer you and your loved ones added financial security. Examine your financial situation and coverage gaps to determine the best policy types, then shop around and compare quotes to save on the coverage you need. 

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent. 

Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York. 

Aflac life plans – 68000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. 65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia. 

Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908). 

In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Aflac Final Expense policies are not available in New York. 

Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions. 

Aflac WWHQ | Tier One Insurance | 1932 Wynnton Road | Columbus, GA 31999 

Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211 

Z2400513            EXP 6/25 

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