Insurance coverage is a safety net which pays for what would otherwise be out-of-pocket expenses. Supplemental insurance is an “add-on” benefit which compliments or supplements another insurance plan, ensuring your out-of-pocket expenses are as minimal as possible.
Who Needs Supplemental Coverage?
While not all forms of supplemental coverage are for everyone, supplemental plans that cover expenses you are more likely to incur is a smart move. Plans may pay for medical-related, out-of-pocket expenses, like co-insurance and co-payments or deductibles. Other insurance plans may provide cash benefits for lost wages or to cover essential expenses, like transportation needs, food, or medications.
How do Supplemental Plans Work?
These plans work similarly to standard coverage. You pay a premium and receive coverage in return. Premiums may be paid monthly or in larger blocks, like six or 12 months at a time. Many plans allow you to choose your premium payment schedule.
Benefit payouts vary as well and may be spread out over weeks or months, though some pay benefits in a lump sum distribution.
What Types of Coverage are Offered?
Supplemental coverage is available in many forms, though medical and life insurance plans are the most common.
•Critical or Catastrophic Illness – These compliment standard health insurance, covering costs associated with serious and long-term illnesses.
•Accidental Death – These may cover only accidental death or may be included in an Accidental Death and Dismemberment plan. In either event, they are a supplemental form of life insurance.
•Hospitalization Indemnity – The expenses associated with in-patient and long-term hospital stays are the focus of these plans.
•”Medigap” – This is one of the most common forms of supplemental coverage and picks up many of the out-of-pocket expenses not covered by Medicare Parts A & B.
Does Supplemental Coverage Make Sense for You?
The premium cost of supplemental coverage is typically low, which means you receive crucial coverage for minimal expense. In other words, the major benefits that come with supplemental insurance coverage are invaluable, if you do ever need to file a claim.