Should You Buy Voluntary Health Insurance? The Pros and Cons

Voluntary health insurance is supplemental health insurance that goes beyond standard health insurance plans. It provides additional coverage options and benefits that basic health insurance may not offer.

Voluntary health insurance differs from standard insurance in a few key ways:

  • It is optional – you don’t have to have it, but can choose to purchase additional coverage if desired. Standard health insurance may be required by law or an employer.

  • It enhances or complements your existing health plan. Voluntary insurance fills in gaps or provides extra benefits not in your primary coverage.

  • You pay the full premiums yourself if you opt into voluntary insurance. With standard plans, premiums may be subsidized by an employer or the government.

  • It allows you to customize your health coverage. You can pick and choose additional benefits you want beyond basic insurance.

  • Offerings and options differ between voluntary insurance companies and plans. You have flexibility to find a plan that fits your needs and budget.

So in essence, voluntary health insurance supplements your core health coverage. It provides additional options to get more comprehensive protection or benefits you specifically want or need. This gives people more control over their healthcare spending and needs.

Reasons to Get Voluntary Health Insurance

Voluntary health insurance serves as an important supplement to standard health insurance plans. There are several key reasons why one may want to get additional voluntary health coverage:

  • Supplements gaps in standard insurance – Even comprehensive health plans often have gaps in coverage or high deductibles/out-of-pocket maximums. Voluntary insurance can help pay for things like vision, dental, prescriptions, and more that may not be fully covered. This provides financial protection against unexpected healthcare costs.

  • Provides extra coverage options – Standard plans tend to offer general coverage. Voluntary plans allow you to customize and select additional coverage for specific healthcare needs. For example, you can get policies for critical illness, accident, hospitalization, cancer, and other specialized areas.

  • Gives peace of mind – Having voluntary health insurance gives people confidence that they’ll be able to access and afford the care they need. It provides security knowing you have extra financial backup for health expenses, which can often be high and unpredictable. This peace of mind is invaluable.

In summary, voluntary health plans are a wise investment that supplements standard coverage, offers more flexibility, and provides peace of mind for individuals and families. They fill in gaps and offer customized protection.

Types of Voluntary Health Insurance

Voluntary health insurance comes in several forms to provide supplemental coverage beyond your basic health plan. Here are some of the main types:

Critical Illness Insurance

Critical illness insurance provides a lump-sum cash payment if you are diagnosed with a specified critical illness like cancer, stroke, or heart attack. This extra money can help pay for treatment, living expenses, and bills during your recovery.

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Accident and Injury Insurance

Accident and injury insurance provides cash payments to cover medical treatment and expenses in the event you suffer an unexpected injury from an accident. It helps pay your out-of-pocket costs.

Hospital Indemnity Insurance

Hospital indemnity insurance provides a daily cash payment, usually $100-300 per day, when you are hospitalized. You can use this money however you want, like paying your deductible, copays, and other medical bills.

Disability Insurance

Disability insurance replaces a portion of your income if you become unable to work due to illness, injury, or accident. This helps pay your living expenses if you can’t work. There is short-term and long-term disability insurance.

Supplemental Medical Insurance

Supplemental medical insurance pays cash benefits for specific healthcare services and expenses. For example, it may cover your deductible, coinsurance, prescriptions, dental, vision, and more.

Benefits of Voluntary Health Insurance

Voluntary health insurance provides several key benefits that make it an attractive option for many people. Some of the main benefits include:

Financial protection

One of the biggest benefits of voluntary health insurance is financial protection. Health care costs can quickly add up, even for routine care. Voluntary insurance helps protect you from large, unexpected medical bills if you get sick or injured. This provides peace of mind knowing you have extra coverage beyond your basic insurance plan.

Voluntary insurance can help cover things like deductibles, copays, and coinsurance that you’d otherwise have to pay out of pocket. This prevents you from dipping into savings or going into debt due to medical expenses. Having secondary insurance coverage through a voluntary plan makes healthcare more affordable.

Access to more healthcare options

Voluntary health plans often give you access to a wider range of healthcare providers and facilities. You may have access to out-of-network doctors, specialists, and hospitals that you otherwise wouldn’t be able to see. This gives you more choices and flexibility over your care.

For example, you may be able to see providers with shorter wait times or use amenities like private hospital rooms. Voluntary insurance can cover these types of upgraded or non-emergency services that basic insurance may not. This gives you more control over your healthcare experience.

Lower out-of-pocket costs

In addition to protecting against large bills, voluntary health insurance also helps lower your routine out-of-pocket costs like copays and deductibles. Plans often provide coverage for services like doctor visits, lab tests, x-rays, prescription drugs, dental care, vision care, and more.

This saves you money each time you need care. Having secondary insurance can potentially lower your out-of-pocket costs by covering a portion of services that your primary insurance doesn’t fully cover. This makes healthcare more affordable on an ongoing basis.

Drawbacks of Voluntary Health Insurance

Voluntary health insurance can have some potential drawbacks to be aware of:

Added Premium Costs

Purchasing voluntary health insurance means paying an additional monthly or annual premium on top of your existing health plan. For some budgets, this added cost may not be feasible. Evaluate whether the extra premium is worth the additional coverage you’d receive.

May Still Have Gaps in Coverage

While voluntary plans offer more coverage, they may not cover everything. For example, many voluntary dental plans only cover preventive cleanings and x-rays, but not major dental work. Or a vision plan may cover an annual eye exam but not the cost of glasses or contacts. Make sure to read the fine print to understand exactly what is and isn’t covered. Grow Glide

Need to Evaluate Policies Closely

Not all voluntary health plans are created equal. It’s important to closely compare benefits, exclusions, provider networks, premiums, and other factors when choosing a plan. Volunteering insurance can vary widely, so don’t assume coverage will be the same across different policies. Doing your homework is key to finding the right plan.

While voluntary health plans can provide valuable additional coverage, they also come with some drawbacks to be aware of. Taking the time to fully understand the pros and cons will allow you to make an informed decision.

Who Needs Voluntary Health Insurance?

Voluntary health insurance can benefit certain groups more than others:

Those with high-deductible health plans – If you have a high deductible health plan from your employer or purchased on the marketplace, you may want to look into supplemental coverage. Voluntary plans can help pay medical bills until you meet your deductible. This provides financial protection if you have an unexpected injury or illness.

People who travel frequently – Many standard health plans only provide emergency coverage out-of-network. Voluntary plans can give you comprehensive coverage when traveling domestically or abroad. This ensures you can see any doctor and are covered for things like hospitalization, prescriptions, and evacuations. Frequent business travelers or those who travel long-term especially benefit.

Those with pre-existing conditions – While the ACA protects those with pre-existing conditions, gaps in coverage can still exist. Voluntary plans can help pay for care related to an ongoing illness or condition. They provide an extra layer of coverage beyond what your major medical insurance covers. This gives you access to more treatment options.

How to Choose Voluntary Health Insurance

When selecting voluntary health insurance, it’s important to take time to compare different policies and premium costs. Don’t just go with the first option you find – shop around to get quotes from several providers. Make sure you understand exactly what is covered and what is excluded on each policy. Read all policy details closely rather than skimming over them. Look for any limitations, exclusions, waiting periods, co-pays, and deductibles.

Also consider bundled packages that combine voluntary health coverage with other insurance products like life insurance or disability insurance. Some providers offer discounts when you bundle multiple policies together. Think about what additional coverage beyond basic health insurance would be useful for your situation.

Pay attention to things like provider networks, pre-approvals for treatment, and coverage for prescriptions and dental/vision when comparing plans. If you already have a doctor or hospital you prefer to use, make sure they are in-network with the voluntary health insurance you choose. Don’t just focus on the premium cost alone – also consider the level of coverage and overall value.

Choosing the right voluntary health insurance takes some research upfront. But taking the time to understand your options and find the best fit will pay off in the long run with better coverage. Don’t rush the decision – make an informed choice. Grow Glide

Costs of Voluntary Health Insurance

The cost of voluntary health insurance can vary quite a bit depending on your individual situation. Some of the main factors that impact the price are:

  • Age – Older individuals typically pay higher premiums than younger people. As you get older, the risk of needing more medical care increases. So insurance companies charge older people more to account for the increased risk.

  • Health status – If you have any pre-existing medical conditions, you’ll likely pay a higher premium. Insurance companies consider people in poor health to be riskier and more expensive to cover. So they charge higher rates accordingly.

  • Coverage level – The more comprehensive your health insurance policy is, the more it will cost in premiums. Plans with lower deductibles, copays, and out-of-pocket maximums come with higher monthly costs.

According to eHealth Insurance, the average monthly premium for an individual health insurance plan in 2022 was $477 per month. For family coverage, the average monthly premium was $1,327. But again, actual costs depend on your specific situation.

To get the best rate, it pays to shop around and compare plans from multiple insurance providers. Look for a policy that provides adequate coverage for your needs at a price you can comfortably afford. With voluntary insurance, you get to choose the plan that strikes the right balance for your budget and healthcare priorities.

Voluntary Health Insurance Providers

Some of the top insurance companies that offer voluntary health insurance plans include:

  • Aetna – Aetna offers a range of voluntary plans including critical illness, accident, hospital indemnity, and more. They have a large provider network and online tools to help manage your benefits.

  • UnitedHealthcare – UnitedHealthcare has voluntary options like critical illness, accident, hospital indemnity, and more. They offer customized plans based on your needs and budget.

  • Cigna – Cigna provides voluntary insurance for things like critical illness, accident, disability, and hospital stays. They have tools to compare plans and get quotes.

  • MetLife – MetLife provides voluntary critical illness, accident, hospital indemnity, and disability plans. They offer benefits counseling and enrollment support.

  • Blue Cross Blue Shield – BCBS companies offer voluntary critical illness, accident, disability, dental, vision, and more depending on location. They provide large provider networks.

  • Humana – Humana voluntary offerings include critical illness, accident, hospital indemnity, and disability plans. They focus on customization and flexibility.

  • Prudential – Prudential offers a wide range of voluntary benefits like critical illness, accident, and hospital indemnity. They provide customized enrollment and support.

  • AFLAC – AFLAC is known for voluntary supplemental health plans like accident, critical illness, hospital, and disability. They offer cash benefits paid directly to you.

When choosing voluntary health insurance, compare options from the top providers to find the best fit for your specific needs and budget. Reach out for personalized quotes and consultations.

Conclusions About Voluntary Health Insurance

Voluntary health insurance can provide valuable additional coverage beyond what your employer or government program provides. However, it also comes at an added cost. Here are some key conclusions:


  • Voluntary health insurance can cover things your other insurance plans don’t, like dental, vision, mental health, etc. This can fill important gaps.

  • It provides more choices and flexibility in coverage. You can often customize and select the coverage you want.

  • For some people, like the self-employed, it may be the only way to get affordable health insurance.


  • Voluntary health insurance adds extra premium costs on top of other plans. This can get expensive.

  • The policies often have high deductibles and copays. Make sure to read the fine print.

  • If you don’t use the benefits much, you may end up overpaying for coverage you don’t need.

Who Should Consider

  • People who need to fill gaps in employer or government coverage. This includes those who need more mental health, dental, vision, etc.

  • Self-employed individuals and small business owners who don’t get insurance through work.

  • Early retirees not yet eligible for Medicare who need individual health insurance.

Overall, voluntary health insurance can provide valuable supplemental coverage if used strategically. But it shouldn’t necessarily be an automatic choice for everyone. Consider your specific health needs and existing coverage when deciding.

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