The Importance of Supplemental Insurance
If you ever find yourself injured in a serious accident and are no longer able to work, or should you come down with a serious illness, it can have financially devastating consequences. Health insurance will only go so far and certainly won’t cover all your expenses, which can add up quite significantly if you have to miss work for an extended period of time. In these cases, good supplemental insurance coverage can be of great assistance.
What Is It
Supplemental insurance is a type of coverage that adds to (supplements) your health insurance by paying out for the myriad of uncovered health costs that many standard policies do not cover.
Who Needs It
Supplemental insurance can help anyone, though there are certain classifications of people for whom it can be especially helpful. Supplemental coverage can be especially relevant for those who have health insurance that requires substantial out-of-pocket costs. It’s also designed for individuals with jobs that have built-in risks (such as a construction job) that can lead to the policyholder being unable to function in his or her job should they become either injured or ill.
How Does It Work
Supplemental insurance coverage helps fills in the holes for which your conventional health insurance doesn’t provide coverage. Policies vary and each is tailored to individual’s needs, but this coverage usually compensates for certain medical costs or can provide a lump sum cash payout that you are free to use as you see fit.
Different Types of Coverage
There is a variety of supplemental policies offered. Critical illness coverage provides financial protection to those who are diagnosed with severe illnesses like cancer or strokes. There is cancer insurance coverage as well, which pays out should you be diagnosed with that particular illness. Accident insurance compensates for, well, accidents that lead to injury. For example, this would apply if you are hurt at your workplace and are thus unable to perform your duties. Hospital insurance compensates for the costs of hospitalization that typical health insurance will not provide. There are other types of policies offered as well.
The major plus of purchasing a good supplemental policy is the protection from big financial losses due to injury or illness and the mitigation of any subsequent medical costs. All these challenges are only made worse should you be prevented from drawing a salary for normal work duties. Supplemental insurance can keep you and your family financially afloat during unforeseen circumstances and provide tremendous peace of mind.