As individuals and families, we seem to carry a lot of different insurances, including health, home, auto and life, among others. Despite having so much insurance, we may still find that we don’t have enough insurance when we need it. Here is where supplemental insurance comes in handy. Learn more about this valuable insurance and how it can benefit you and your family.
What it Is
Supplemental insurance is a type of insurance that provides you with extra insurance above and beyond what you’d get with your regular policy. Like umbrella insurance policies, supplemental policies are not the main policy but an addition to the main policy. You can’t buy a supplemental policy by itself. It can only be purchased as an add-on to your policy.
Who it’s for
Supplemental policies are for anyone who wants additional coverage just to feel more secure or because their main policy doesn’t offer enough coverage.
How it Works
Supplemental policies work in much the same way as regular insurance policies. You pay the insurance company a premium, and they provide you with a certain amount of coverage. Your premium is based on the amount of coverage as well as a few other factors. The money you get from a supplemental policy can be used any way you see fit, including household care, medication, food or lost wages from a medical problem. Many policy holders use their supplemental policies to pay for deductibles, coinsurance or co-payments.
Different types of coverage
Supplemental policies can be used with any other type of insurance you currently have. This includes health, auto, homeowner’s, accident, disability or life insurance. Supplemental policies are generally very affordable and much cheaper than regular policy especially considering what they offer.
There are many benefits to having a supplemental policy in place, but the main reason is that it offers peace of mind in knowing you have sufficient coverage if and when you do need it. You never know if you’re going to become sick or have a serious accident. Supplemental policies can help in both of these situations.