Supplemental Insurance

Even for those who are happy with what they consider to be fine health insurance, there is sometimes an annual deductible that can be quite unattractive, perhaps even resulting in a reluctance to utilize one’s own health care out of fear of having to cover what can often be a considerable sum. This problem can then be compounded by the addition of co-pays on top of everything else. And most of these insurance policies will not offer coverage for experimental treatments. Should you wish to avail yourself of a treatment that is not covered, it might be good to be prepared for some enormous out-of-pocket costs. For situations such as these, one can be well served by purchasing some good supplemental insurance coverage.

What supplemental insurance does is help out financially when your health insurance limits have been reached. It compensates you by handling any deductibles and co-pays. Many policies even offer coverage that will compensate you for any expenses on travel and lodging incurred when receiving treatment out-of-state, for example.

Quality supplemental coverage can be helpful for anyone, but it is particularly good for those who wish to avoid large out-of-pocket expenses due to the limitations of their normal coverage. This coverage can also be really suitable for people who are working in high-risk occupations, or perhaps those with a pre-existing condition.

A typical supplemental insurance plan will cover certain injuries and illnesses as outlined in the policy details. Should one of these illnesses or injuries befall the policyholder, the insurance company will often pay out a lump sum amount, up to the policy maximum. This, of course, is after one has successfully filed a claim, which was approved. The funds are then provided directly to the policyholder so he or she may spend them in whatever way desired.

Supplemental insurance provides extra coverage for accidents and severe injuries. This can be in the form what is known as ‘serious illness’ coverage, which covers serious and debilitating illnesses such as cancer, heart disease or stroke. Keep in mind that coverage is not extended to what are deemed chronic illnesses, like diabetes for instance. Supplemental policies are more likely to cover the more serious accidents that result in time away from work.

The big plus of a supplemental policy is the peace of mind it provides in knowing that help is there if needed for big medical expenses and other bills. For example, it can help with the rent should one be incapacitated and not working as a result. Sometimes these policies are part and parcel of an employer’s benefits package. In these cases, premium rates can sometimes be lower.