If you are injured in a serious accident and can’t work, or if you should get cancer or another serious illness, it can present a huge financial hardship for you and your family. Health insurance won’t cover all of your bills, which will multiply quickly if you have to miss work for an extended amount of time. In such a scenario, supplemental insurance coverage would help out.
What is it?
Supplemental insurance is simply a type of coverage which supplements your basic health insurance plan by paying for uncovered health care expenses. Depending on the policy, it may pay for other costs as well.
Who is it for?
A supplemental policy can make sense for anyone, but there are certain groups of people who should definitely have one. A supplemental policy can be a good idea for people whose health insurance requires a large amount of out-of-pocket costs. It’s also a good idea for people with jobs involving manual labor who would likely be unable to work if they were injured or became sick.
How does it work?
Supplemental coverage pays for costs your basic health insurance doesn’t cover. Depending on how your policy is written, it may be limited to paying only certain medical costs or it may very well pay you a lump sum payment that you can use for any expenses you see fit.
Different types of coverage
There are several different types of supplemental policies available. Critical illness insurance offers coverage to people diagnosed with serious illnesses such as cancer or stroke. There also is cancer insurance, which pays you only if you are diagnosed with that disease. Accident insurance pays you if you are injured in an accident at work, or elsewhere, that prevents you from working. Hospital insurance pays for costs of hospitalization that your health insurance doesn’t cover. There may be other types of policies available, depending on the insurance company.
The major benefit of having a supplemental policy is that you have an additional backstop in case you are hurt or become ill and rack up large medical bills. If this is the case, the unfortunate situation can be made much worse if your condition prevents you from maintaining employment. Supplemental insurance can mean the difference between financial ruin and being able to maintain your lifestyle. It’s a wise choice that can provide peace of mind for you and your family.