Who Can Use It?
This type of insurance is great for people who want better coverage, but do not want to pay high monthly premiums. Most supplemental policies have monthly costs of $2 to $10 a month, but provide very good coverage.
How Does It Work?
Customers look at the different policies offered by a supplemental insurance provider. They decide on the coverage that interests them and negotiate the specifics. Depending on their age and health, the supplemental provider will offer a monthly quote in exchange for paying a lump sum amount when the event takes place.
For example, a hospital supplemental policy will require the insured to pay $5 a month in exchange for a guaranteed $5,000 payment if they are in the hospital for more than two days.
Different Types of Coverage:
There are many different types of supplemental plans available to customers. Some examples of supplemental plans are:
Supplemental coverage has gained popularity due to the number of holes that exist in regular policies. For example, most Medicare health plans have extremely high out of pocket expenses. Someone on a decent Medicare plan will have to pay thousands of dollars out of pocket if they spend a week in the hospital.
Supplemental coverage can help these people. By providing them with a lump sum amount when they are admitted to the hospital, the supplemental provider helps them pay their medical bills, take time off work and meet regular expenses.
Not everyone can afford the most expensive health care or life insurance policies. By purchasing supplemental plans, they can get great coverage without having to break the bank.