Supplemental Insurance Overview
When a person is stricken with an illness or injury, the vast majority of health insurance plans won't compensate for the total of the various and sundry medical costs. And if your sickness or injury is bad enough to prevent you from being employed for a period of time, you could likely be faced with a serious lack of income. However, if you carry supplemental insurance you can be greatly protected from such perils.
Supplemental insurance is a kind of coverage that, as it is obviously named, “supplements” your health insurance. Depending on the type of coverage, it can pay for that which your existing health insurance will not or it can simply provide a lump sum payment for you to use as you see fit.
A supplemental policy is vital for those who might face a financial catastrophe if they were made unable to work as a consequence of some serious medical issue. This would include folks who are self-employed and are the main breadwinners in a household. Good supplemental insurance is especially appropriate for those in fields where injuries are commonplace, such as construction work. Though this might be the case, a supplemental policy can be a boon for just about anyone.
How it functions
Depending on the kind of supplemental insurance one has, a policyholder might receive reimbursement for various medical costs or obtain a lump sum payment to utilize in whatever way the policyholder chooses. This coverage will help if you are hurt in an accident or diagnosed with various illnesses or medical conditions. Keep in mind that most policies will likely mandate certification of the condition from a physician before a claim is paid.
Kinds of policies available
There are essentially three kinds of supplemental policies. One is in the form of accident insurance, which pays out a lump sum if one is injured in an accident. Another is critical illness insurance, that pays for those who are diagnosed with a serious medical condition, like cancer or heart disease. Medicare supplement insurance is a common form of this coverage and helps pay where Medicare falls short.
The main plus of supplemental insurance is the provision of additional coverage in the event you are faced with a catastrophic sickness or injury that results in large costs and the possibility of being unable to work as a result.