Supplemental Health Protection Guide
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NIL Wealth Strategies is an independent firm. Coverage is offered through Aflac. Aflac is not affiliated with NIL Wealth Strategies and does not sponsor or endorse this guide
Understanding Supplemental Health Coverage
Supplemental health insurance provides optional coverage that works alongside your existing health insurance plan. Its primary purpose is to offer direct cash benefits to you, the policyholder, when covered events happen, like an accident, injury, or hospital stay.
This coverage fundamentally differs from traditional medical insurance. It doesn't replace your primary plan and operates independently, meaning it won't interfere with employer, school, family, or government health programs. The key distinction is that benefits are paid directly to you, not to healthcare providers.
Cash Benefits
When a covered injury or hospital event happens, this policy pays a set cash benefit directly to you. The payout is not based on medical bills, which means you can still receive cash support even if your regular health insurance covers the treatment. Cash benefits are paid directly to you, not the doctor or hospital, and can be deposited into your bank account or sent by check. Funds are flexible and can be used however you choose based on your situation. The purpose is to create breathing room during a difficult time, not add restrictions.
It's also important to understand school athletic coverage. Some schools offer athletic insurance, but it varies widely and is often secondary to your primary health insurance. In many cases, it only applies to injuries during official team activities. Injuries outside school supervision — such as offseason workouts, camps, club sports, or private training — may not be covered, leaving families responsible for out-of-pocket costs.
Tax Treatment
Individual supplemental health cash benefits are insurance payouts, not earnings, and are generally not taxable or subject to backup withholding. Tax treatment depends on who pays for the policy. When coverage is individually owned and paid for with after-tax dollars, benefits are generally received tax-free. When coverage is paid for by an employer, benefits may be taxable depending on how premiums are handled.

This is why supplemental coverage is often viewed as financial protection, not just medical protection — it helps keep households stable during unexpected injury events.
The Financial Gap Traditional Insurance Leaves Behind
Traditional health insurance focuses on covering medical treatment but often leaves individuals financially exposed. Supplemental health insurance exists to help manage the financial disruption that can follow injuries or hospital events, providing cash to bridge the gap between medical coverage and real-world financial needs.
Most financial stress during an injury doesn’t come only from hospital bills — it comes from the real-life costs that show up during recovery, such as deductibles, copays, coinsurance, travel for treatment, missed work, rent, and everyday expenses. Cash benefits give families flexibility and control by helping cover these gaps while the athlete focuses on recovery.
What This Benefit Can Help Cover
Out-Of-Pocket Medical Costs
Deductibles, coinsurance, and copays.
Rent & Bills
Housing and utility payments kept current.
Travel for Treatment
Transportation to appointments and hospitals
Daily Living
Food and essential household needs.
Replacing Lost Income
Support if a parent misses work.
Rehab Visits
Therapy and recovery sessions.
Types of Supplemental Health Coverage
Accident Insurance
Accident insurance provides cash benefits for covered accidental injuries and related treatment according to a defined benefit schedule (amount).
Common Covered Events:
  • Sports injuries during practice or competition
  • Car accidents and transportation incidents
  • Slips, falls, and everyday accidents
  • Emergency room visits related to an accident
  • Follow-up care from a covered accident
Benefits are paid according to the policy's benefit schedule, providing predictable financial support when accidents occur.
Hospital Indemnity Insurance
Hospital indemnity insurance provides cash benefits if the insured experiences a covered hospital stay, designed for larger, more disruptive medical events.
Coverage Focus:
  • Covered hospital stays related to injury or illness
  • Financial impact of hospitalization
  • Support beyond medical treatment costs
  • Protection for significant health events
  • Time away from work, school, and athletics
This coverage addresses the substantial financial disruption that hospitalization creates, recognizing that medical bills are only part of the total financial impact families face.
Who Benefits from Supplemental Coverage
Athletes at All Levels
Youth, high school, college, recreational, and adult athletes face heightened injury risk through sports participation and benefit from targeted accident protection.
Active Individuals & Families
Parents and active families managing busy lifestyles and multiple activities need protection against everyday accidents and unexpected hospital events.
Working Professionals
Independent contractors, self-employed individuals, and professionals without robust employer benefits gain essential financial protection.
Important Note: This coverage is not limited to sports-related incidents. It may apply to everyday accidents and covered hospital events that occur in daily life, providing comprehensive protection for active lifestyles.
Claim Process & Payment
Most claims are processed once the required documentation is received, with payment issued according to the policy benefit schedule. Each eligible claim is reviewed independently, allowing benefits to be paid for multiple covered events over time, according to the policy benefit amount.
Event Occurs
An accident or hospital stay happens as defined by your policy.
Claim Submitted
Required documentation is provided to the insurance carrier.
Claim Reviewed
The carrier evaluates against policy terms and benefit schedule.
Cash Payment Issued
Benefits are paid directly to you, the insured individual.
You decide how to use every dollar—whether that's covering medical bills, keeping up with rent and utilities, replacing lost income, or handling unexpected costs that arise during recovery.
Coverage Customization
NIL Wealth Strategies supplemental coverage is highly flexible, allowing you to tailor protection to your specific needs and budget. Families can choose from various benefit levels, moving beyond one-size-fits-all plans.
Benefit Options
Option 1
Provides smaller cash payments for common situations
Option 2
Provides a moderate cash payment for a wider range of situations
Option 3
Provides the most financial help across the most situations.
How Coverage Is Chosen
Coverage options are based on your everyday lifestyle and activity level, your family size and responsibilities, and how much financial protection you want while staying within a budget that feels comfortable for you.
Families may choose accident coverage, hospital coverage, or both. When more than one coverage is selected, each coverage pays separately, allowing benefits to stack and provide additional financial support when it’s needed most. Covered benefits may be paid multiple times throughout the year if separate covered events occur, subject to policy terms and benefit limits.
Example: If an accident leads to a hospital stay, accident coverage may pay benefits for the injury and related hospital care, while hospital indemnity coverage may also pay benefits for the hospital stay itself—allowing multiple cash benefits to be paid from the same event.
Why Supplemental Coverage Matters
As a college athlete, I experienced firsthand how quickly injuries can disrupt everything. During my first year, I required surgery for a groin injury. In the years that followed, I tore both ACLs, resulting in two additional surgeries. While the medical treatment itself was addressed, the impact extended far beyond the operating room. Time away from school and athletics, ongoing rehabilitation, travel for care, and everyday living expenses continued regardless of injury. That experience highlighted the importance of having coverage that supports more than just medical bills.
Why This Matters for Families
Families choose supplemental coverage because it prepares them for the financial realities that follow injuries or hospital events — not just the medical bills.
Why Athletes Benefit
Athletes face higher injury risk at every level. Supplemental coverage provides financial flexibility when injuries disrupt training, competition, school, or work.
What To Know About Your Coverage
Coverage Activation
Coverage activates based on the type of protection selected. Accident-related benefits are designed to activate quickly, while hospital indemnity may follow standard plan guidelines depending on your state.
Pre-Existing Conditions
Coverage generally applies to new covered events. Prior or pre-existing conditions may be subject to specific plan rules and limitations, clearly defined in policy terms. This helps set clear and realistic expectations
Ongoing Coverage
Designed for long-term stability, coverage typically renews automatically with timely premium payments. Re-application is usually not required, providing consistent protection without administrative burden.
Coverage That Stays With You
Coverage stays with the insured through job changes, school transitions, or relocation. No employer sponsorship is required, making it ideal for mobile individuals whose circumstances frequently change.
Next Steps: How to Enroll
Coverage options are offered through nationally recognized supplemental health insurance carriers, including Aflac. Enrollment, pricing, underwriting, and claims are handled directly by the insurance carrier
Simple Electronic Enrollment
Enrollment is completed through a secure electronic application process and typically takes only a few minutes. Adults can enroll themselves, and parents/legal guardians can easily complete the process for minors.
Clear Expectations & Pricing
Before final submission, all eligibility criteria, available options, and personalized pricing are clearly presented, ensuring full transparency. Enrollment typically takes only a few minutes.
Start of Coverage
Once enrollment is submitted, underwriting is typically completed within 1–3 business days. After approval, coverage begins according to the policy terms issued by the insurance carrier, and benefits become available for covered events as outlined in your policy.

All final details, including eligibility, available benefits, and precise pricing, will be displayed during the electronic enrollment process, which may vary by state.