When Is Supplemental Insurance A Good Idea?
Supplemental insurance works with other policies that are in place. This type of policy isn’t necessarily designed to replace a primary coverage policy. Self-employed individuals and those without the capacity to handle a large amount of out-of-pocket expenses can rely heavily on their Supplemental policy to handle expenses.
Supplemental policies are an additional type of coverage that can be applied toward medical expenses, which are not covered under the main policy. The plan carries an additional premium and is used to cover out-of-pocket expenses that are unexpected. Utilizing this policy, policyholders have been able to use their benefits to pay for utility bills, rent and more. Many employers offer these plans directly to consumers, but plans can also be purchased directly from an insurance company.
There are several types of supplemental plans available. Supplemental policies can be used to cover out-of-pocket medical expenses like deductibles and copays. There are also policies that pay direct cash benefits to the policyholder in the form of a lump sum payment. The cash payment can be used at the policyholder’s discretion.
Critical Illness insurance is a form of coverage that is designed for those suffering from serious illnesses like cancer. Critical Illness policies disburse lump-sum cash benefits to address medical expenses that are not typically covered under an initial plan. An accidental death policy is a form of protection that is guaranteed for persons between the ages of 18 and 70. Lastly, Hospital Indemnity insurance policies offer a cash benefit if a person has to be hospitalized for an extended amount of time.
This form of coverage is tailored to meet the needs of patients with a specific set of needs. Insurance companies offer these policies targeting specific circumstances like hospitalization, critical illnesses and accidental death. The first step to determining whether or not you are a good fit for a particular type of policy is to consider your health needs. For help on learning more about you can benefit from this form of coverage, contact one of our agents.