Do I need disease specific insurance if I have comprehensive insurance?

Not likely any more than you’ll need an extra hole in your head. If you have comprehensive health insurance (HMO, PPO, or traditional indemnity insurance), you don’t necessarily need to purchase a disease-specific insurance plan. Your medical treatment will be covered under your comprehensive plan. The disease-specific policy serves as a very restrictive supplemental policy. Most give you a lump sum of cash that you can use to pay for expenses, such as transportation, that aren’t covered under your comprehensive insurance. Be aware that the coverage under these policies is often very restricted and can be expensive. Some call these legal robbery policies, because the restrictions are often so encompassing that you are more likely to be hit by lightening twice in a day than benefit from one.

If you have a good comprehensive health insurance plan, you may not need a disease specific insurance plan. Be certain that you understand what your policy covers and what is not covered before purchasing a plan that would simply duplicate the primary plan. If you believe that your plan leaves gaps or that you would experience extreme financial burden from expenses that go along with illness, you may consider a plan that offers a lump sum payment for expenses outside of medical treatment.