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Supplemental Insurance

Why Supplemental Insurance is Necessary

Ever heard of supplemental insurance? It’s an insurance coverage that works alongside other insurance policies you already have. It’s not meant to stand alone or offer primary health coverage to individuals. Moreover, it’s not for everyone. Supplemental insurance works well for individuals who need help with medical bills after their primary health insurance is diminished.

What is covered?

This insurance covers a number of conditions including indemnity insurance which offers fixed cash benefits for the services you’re covered for. This may include hospital stays for outpatient or emergency services.

Some supplemental medical plans cover fixed benefits for preventive medical care that’s covered for. If you have a critical illness or condition, some policies will offer out of pocket payments for any expenses incurred due to heart attack, cancer, heart surgery, or stroke.

How Supplemental Plans Work

Supplemental plans bridge the gap left by traditional policies. Health insurance, in particular, has broad-based coverage with a wide range of conditions and needs. Which means, you may not have adequate coverage for specific medical procedures or illnesses. Sometimes, policy limits don’t allow your insurer to cover all the potential costs. Additionally, lost wages or monetary impacts that come as a result of an injury or illness are never covered by the traditional health insurance.

Supplemental plans work by filling those gaps and offer specific types of care like vision, cancer treatment, and sometimes cash in cases of disability, accidents, or hospitalization.

Who needs it?

Specialized coverage offered by supplemental plans attract individuals who are prone to the specific conditions they cover. Insurance companies, therefore, tend to charge higher premiums than the general policies. Since the scope of supplemental plans if limited, it’s wise to compare rates from different insurers carefully. You also need to compare costs and your prevailing conditions and see if you really need the coverage.

Final Word

Never purchase supplemental coverage until you’re totally convinced of what it covers, whether your prevailing circumstance or risks justify the expenses, and how much it will cost you. Otherwise, with the aggressive insurance marketers out there, you might end up with a plan that adds no value to your life.