Occasionally we get questions about purchasing accident and critical illness insurance in lieu of major medical insurance. We would advise against that. While we do sell supplemental products, they are intended, as the name implies, to supplement a health insurance plan, not to replace it. Supplemental policies are helpful in paying a portion of the out-of-pocket expenses on a health plan or paying other bills that are not covered by health insurance when you’re out of work due to an illness or injury.

Our recommendation is first to purchase a health insurance plan, then to fund your Health Savings Account if your plan is HSA-compatible, and then to purchase supplemental coverage if your budget will allow it. Supplemental insurance should never be your primary coverage.