What it is:
A privately sold type of insurance, supplemental insurance helps policyholders meet costs above those costs that exceed those paid by traditionally held insurance. Many times, accidents, illnesses or injuries end up costing policyholders far above the costs, due to hospital stays, physical therapy, and many other unpredictable factors. Having a backup insurance plan, such as a supplemental policy, relieves financial pressure for people.
Supplemental insurance is a secondary insurance that serves to pay some auxiliary costs that traditional insurance or Medicare do not cover, such as deductibles, copayments, and coinsurance. Many plans offer hospital indemnity insurance, which offers fixed cash payouts to cover incidental fees for hospital stays and outpatient services.
Who it is for:
This type of insurance is good for anyone since accidents and hospital stays are unpredictable. However, this type of insurance is particularly useful for those who expect any upcoming surgeries and will need to stay in the hospital. Anyone who is self-employed and those with children can also use additional funds during an emergency.
How it works:
Most workplaces that offer traditional insurance also offer a type of plan that lets employees enjoy supplemental insurance. Signing up this way is the simplest method, but people can also buy it on their own, making their own regular payments. Policyholders can make claims the same way that they would make claims for traditional coverage.
Different Types Of Coverage:
With a few different types of supplemental plans, there is something to help anyone who might face costs that soar above their traditional insurance company’s coverage cap. Basic supplementation allows for emergency room costs, urgent care costs and sometimes mammograms and other preventive types of testing. One of the most valuable types of coverage includes the hospital indemnity insurance, which pays out lump sums to pay for hospital stay fees.
While the burden to pay for this type of insurance lies with the carrier, the major benefit, peace of mind, is generally worth the sacrifice. Knowing that a hospital stay won’t break the bank is always a relief.