Should you be injured in a serious accident and can no longer continue in working or should you get some serious illness, this can mean financial ruin. Health insurance only goes so far and certainly won't cover all your bills, all of which can start to add up frighteningly if you have to miss work for a long period of time. In these cases, supplemental insurance coverage is there to help.
What is it?
Supplemental insurance is a kind of coverage that adds to (or “supplements”) your health insurance by compensating you for the myriad of uncovered health expenses that many conventional policies do not cover.
Who needs it?
Supplemental insurance can help just about anyone though there are certain classifications of individuals for whom it can be especially helpful. A supplemental policy can be great for those who have health insurance that might require a substantial amount of out-of-pocket costs. It's also tailored for individuals with jobs that have built-in stresses and risks (such as construction for instance) that can lead to the policyholder being unable to work should they be either injured or ill.
How does it function?
Supplemental insurance coverage helps fills in the gaps for which your conventional health insurance doesn't provide compensation. Policies do vary and each is tailored to your needs but, in general, this coverage pays out for certain medical expenses or it can provide a lump sum cash amount for which you are free to use as you see fit to cover costs.
Different kinds of coverage
There is a myriad of various kinds of supplemental policies offered. Critical illness coverage offers financial protection to those who are diagnosed with severe illnesses like cancer or strokes. There is cancer insurance coverage as well, which specifically pays out should you be diagnosed with that particular illness. Accident insurance pays for just what the title alludes, namely if you are hurt at your place of employment and are thus prevented from working. Hospital insurance compensates for expenses of hospitalization that typical health insurance will not. There are likely other kinds of policies offered as well; ask an insurance professional for help and info.
The major plus of carrying a supplemental policy is how you are safeguarded from big financial losses should you be injured or contract an illness and, as a consequence, pile up big medical costs. This, of course, is only made worse should whatever is challenging you also prevents you from drawing a salary or payment for normal work services rendered. This is how good supplemental insurance can be a financial life-saver.