All about supplemental insurance
When you become ill or injured, your health insurance likely won’t cover all your medical bills. And if your illness or injury is serious enough to prevent you from working for a period of time, you could be faced with the additional prospect of not having any income. If you have supplemental insurance, those issues are less of a concern.
What is it?
Supplemental coverage is a type of insurance that literally supplements your health insurance. Depending on the type of policy, it may pay for things your health insurance doesn’t or offer you a lump sum payment to use however you like.
Who is it for?
A supplemental policy is important for anyone who would face a hardship if unable to work due to a serious medical issue. This includes people who are self employed and those who are the only wage earner in a household. Supplemental coverage also is a good idea for people in fields where injuries are common and leave benefits are not good, such as construction. However, a supplemental policy can be a good idea for anyone.
How does it work?
Depending on the type of supplemental policy you have, you may receive reimbursement for specific medical expenses or you may receive a lump sum payment to use however you want if you are injured in an accident or are diagnosed with a certain type of illness or medical condition. Most policies are likely to require certification of your condition from a doctor before paying on a claim.
Types of policies
There are three main types of supplemental policies. Accident insurance pays you a lump sum payment if you are injured in an accident. Critical illness insurance pays you if you are diagnosed with a serious medical condition, such as cancer or heart disease. Medicare supplement insurance helps pay costs that Medicare does not cover, such as co-pays.
The main benefit of a supplemental policy is that it offers you some additional coverage in the event you are faced with a catastrophic illness or injury that causes large bills and prevents you from working.