What is Supplemental Insurance?
Health insurance is useful because it helps pay for medical expenses. But most health insurance has its limits. Plus, you still have to pay out of pocket costs because insurance does not cover it all. This is where supplemental insurance enters the picture. It can help pay for expenses that traditional health insurance does not cover. There are also supplemental policies that cover other things, such as car accidents or certain illnesses.
This coverage might offer you additional support if you are hospitalized. It might pay you a lump sum if you are hurt in an accident. However, keep in mind that supplemental insurance is not something you can use in place of traditional coverage. It works with your existing coverage, not as a standalone product.
Do You Need It?
A supplemental policy can help just about anyone with health insurance. But it is recommended for people who would experience an extreme financial hardship in the event of a layoff due to injury or illness. If your job is dangerous, such as a firefighter or police officer, then you also might want to consider supplemental coverage. Those are high risk jobs where an injury could leave you without work for long time.
How it Works
A supplemental policy covers a specific event or category. You might have a policy for on the job accidents, critical illness or death. When it is time to pay a benefit, you or a beneficiary would likely receive a lump sum payment. These policies are often available as part of a voluntary workplace benefits package.
Types of Coverage
You would need to speak with an insurance agent or your employer to learn what is available to you. But generally speaking, there is supplemental accident insurance which pays a lump sum if you are hurt in an accident and are unable to work. And critical illness insurance pays you benefits if you are diagnosed with cancer or another illness covered by the policy.
Take time to learn more about supplemental insurance to see if it is something you want.