What is a Supplemental Insurance Policy?
Insurance provides a safety net so the policyholder does not have to pay certain expenses out of their own pocket. Supplemental insurance is add-on insurance that goes along with insurance the policyholder already has. It decreases the policyholders out of pocket expenses even more.
Who Needs this Coverage?
Supplemental coverage is not for everyone. The plans are best when there are expenses you are very likely to incur. A person with an illness could use supplemental coverage to reduce their medical expenses. Plans may cover medical-related, out of pocket expenses, such as co-payments or deductibles. Some supplemental plans even offer cash benefits for lost wages or essential expenses, like transportation or food.
How do Supplemental Plans Work?
Supplemental coverage works much like traditional insurance. The policyholder pays a premium, and the insurance company provides certain benefits. As long as the policyholder pays as agreed, the insurance company will uphold their part of the agreement.
The insurance company usually issues benefits over week or months. In some cases, the insurance company might pay the benefit in a lump sum.
Types of Coverage Available
Is Supplemental Coverage Reasonable?
Premiums for supplemental insurance are usually inexpensive. Having an extra helping had is not a bad idea.