What is Supplemental Insurance?
Supplemental Insurance is great for people who may not have a lot of money to spend on insurance. Instead of having huge holes in your basic health or accident care policies, you can purchase supplemental policies to boost your overall insurance. Each supplemental policy is specific, which means you are only buying what you really want or need.
Who is it For?
Supplemental policies are great for people who want comprehensive insurance but may not have the financial power to make that happen with regular policies. For example, going from one tier of health insurance to another is very expensive. Instead, someone could choose to purchase a supplemental health and hospital policy. The cost is only $5 or $10 a month, but the benefits are great.
How Does It Work?
Supplemental policies work in a very simple manner. You choose what policy you want, sign up for that insurance, and make small monthly premium payments. These payments are typically $5 to $10 per policy. When the policy is triggered, the supplemental policy company will give you cash immediately. This money can be used however you want.
For example, if you get a health and hospital policy, you may receive $5,000 if you are admitted into the hospital. This money can help pay out of pocket expenses, lost earnings, and used for any other means.
Different Types of Coverage
There are a lot of different supplemental policies available. The most popular policies are supplemental cancer insurance, health insurance, hospital insurance, cancer or long term illness insurance, automobile insurance and life insurance. Each of these policies covers a different situation, but they are all governed by the same supplemental policies. If something bad happens, you receive the pre-agreed lump sum cash amount from the company.
These policies are very beneficial for people who want to be protected at the lowest possible cost. It may seem unnecessary to purchase these policies, but the cash they provide in emergencies can be the difference between being protected or being bankrupt.