What you need to know about supplemental insurance
Health insurance only covers so much. Most policies have deductibles, copays and coinsurance. To help with those costs, you can get a supplemental health insurance policy.
What is it?
Supplemental insurance is so named because it acts as a supplement to your regular health insurance. If you have a supplemental policy, it will pay many of the costs that your own insurance won’t, such as deductibles and copays.
Who is it for?
Supplemental health insurance is for anyone, but it is particularly useful for people who may be faced with a lot of out-of-pocket costs from health insurance claims. Some supplemental policies provide coverage for medical costs only for certain catastrophic illnesses and injuries, such as cancer or heart attack, while other policies will cover a range of conditions.
How does it work?
The way most supplemental policies work is that they have a certain range of medical conditions, from illness to injuries, for which they will pay. You have to initiate a claim by certifying you have one of those conditions. Once the claim is certified, your supplemental insurer will pay you a lump sump up to the limits in the policy. That allows you to use the money for whatever you want.
Types of coverage
Most supplemental policies cover only certain medical issues, meaning you can’t make claims for minor ailments. Some policies cover only critical illnesses such as cancer, heart attack and stroke. Other policies cover only major injuries, such as those that occur on the job. And some policies are more expansive, covering a wide range of illnesses and injuries.
The major benefit of a supplemental policy is getting extra money to cover medical bills when you may need it the most. An additional benefit is that the money the policy pays comes in the form of a lump sum directly to you. That way you can use the money where you may need it most, rather than having an insurance company make that decision for you.
Good Supplemental Insurance
Traditional health insurance will only cover you for so much. With the vast majority of policies you will have to pay deductibles, co-pays and coinsurance costs. To help with these expenses, you can purchase a supplemental health insurance policy.
Supplemental insurance is so called due to the fact that it serves as a “supplement” to your normal health insurance. If you obtain a supplemental policy, it will compensate you for the many of the expenses that your normal insurance will not, like deductibles and co-pays.
Supplemental health insurance is designed for just about anybody, but it is especially helpful for those who may be challenged by a lot of out-of-pocket expenses from health insurance claims. There are supplemental policies that give protection for medical costs only for certain catastrophic sicknesses and injuries, for example cancer or a heart attack. Other policies will provide coverage a wider range of issues.
The majority of supplemental insurance coverage works for a particular range of medical issues, from sickness to injuries, for which they will provide the policyholder compensation. One starts a claim by providing proof that he or she has on or more of these conditions. Once the claim is accepted, the insurer will generally pay the policyholder a lump sum not to exceed the agreed upon limits of the policy coverage. This is quite helpful in that the policyholder can use the funds in any way he/she wishes.
Most supplemental coverage is designed only for certain medical challenges, which means that this kind of a policy is not meant for minor issues. Some policies will provide coverage only for critical illnesses like cancer, heart disease and strokes. Other variants will cover only major injuries, like those that happen in the workplace. Some coverage choices are more comprehensive and will cover a wide extent and variety of illnesses and injuries. The more coverage the higher the premiums of course.
The major result of a supplemental policy is the receipt of extra funding to help cover medical expenses when you likely will be in need of it most. Another helpful aspect is that the policy steps up with a lump sum of money paid to you directly. As a consequence the policyholder decides how to use the money as opposed to the insurance company making the decision for him or her.