Supplemental Insurance Cost Calculator
Estimate the value and cost-effectiveness of supplemental insurance policies like hospital indemnity, cancer, and accident coverage.
Results
Visualization
How It Works
Supplemental insurance policies pay cash benefits directly to you when you experience a covered event (hospital stay, cancer diagnosis, accident). They can help cover deductibles, copays, and non-medical costs during illness.
The Formula
Annual Benefit = Daily Benefit × Days Per Event × Events/Year
Net Value = Annual Benefit − Annual Premium
Net Value = Annual Benefit − Annual Premium
Variables
- Benefit — Per-day or per-event cash payment
- Premium — Monthly premium for the policy
- Events — Expected number of claims per year
Worked Example
Hospital indemnity at $120/month, $300/day benefit, one 5-day stay: $1,500 benefit vs $1,440 premium = $60 net value.
Practical Tips
- Supplemental insurance is most valuable if you have high-deductible plans or frequent hospital stays.
- These policies pay regardless of other insurance — you can use the cash for anything.
- Most healthy seniors pay more in premiums than they receive in benefits.
- Consider self-insuring by putting the premium amount into savings instead.
- Read the fine print on waiting periods, pre-existing condition exclusions, and benefit limits.