As the name suggests, supplemental insurance is any kind of insurance that is taken in addition to the original or primary insurance. These are optional insurance policies and can be taken as an extra precaution by any individual but if you don’t have savings, then you can do nothing, for save money you should stop worthless expenses, I’ll explain to you in a simple example if you don’t watch TV regularly then stop recharging cable service and use tools like Tencent Gaming Buddy and watch all programs from your mobile on TV. when you calculated the total amount of these kinds of worthless expenses, then you can see that with these savings, you can cover your one-month expenses, or pay EMI of your loan or insurance.
Such policies can cover service costs and other expenses that may not get covered under the primary insurance policy. Expenses covered under such a policy may include payment for out of pocket expenses like copayments. Cash benefit may also be provided over some time to cover any loss of wages, any costs associated with transportation, food and so on due to illness or injury. Such expenses generally fall outside the purview of the primary insurance policy.
How to Obtain Supplemental Insurance?
Supplemental Insurance can be obtained by an individual either through his/her employer or by directly purchasing the policy from an insurance company. Primary and Supplemental insurance policies can be of the same insurance company or can be of two different companies. Hence, a policyholder is not bound to purchase supplemental insurance from the primary insurance company.
Types of Supplemental Insurance Policies
Supplemental Insurance can be taken for various purposes. This kind of policy can be obtained in the form of disability insurance, accident insurance, health insurance or life insurance. Different policies may provide a different kinds of benefits. For Instance, accident insurance may cover expenses such as cost of hospitalization, recovery income, ambulance/transportation, costs of emergency room care and so on.
Imagine a situation where an individual is not able to undertake any physical activity because of any kind of disability resulting in no income. In such a situation, it is quite possible that this individual and his/her family may not have access to necessities like food, clothing and so on. By taking a disability policy an individual can prevent such extreme situations. Certainly, an individual will not prefer to pay for another insurance policy that has benefits that are somewhat similar to the benefits of the primary insurance policy.
Premium Payable on Supplemental Insurance
Primary insurance policy generally provides a range of benefits on happening of the event. Hence, the premium paid on such a policy would generally be higher than the premium payable on a supplemental insurance policy. It should also be ensured that there is no duplication in benefits offered by primary and supplemental policy as it may result in unnecessary expenditure on account of extra premium on the supplemental policy.
Pre-existing Medical Conditions Coverage
In contrast to other types of insurance, supplemental insurance may offer coverage for pre-existing medical conditions. This can be considered as one of the most attractive features of a supplemental insurance policy. Hence, this insurance can be an attractive option for people who are not given insurance coverage on account of such pre-existing medical conditions. Obtaining supplemental insurance can be beneficial in many cases.
However, it is important to note that there are is a cost attached to it. Therefore it becomes critical for an individual to take various parameters like health, savings, income and so on before taking a final decision on buying this policy.