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Supplemental Insurance

In general, supplemental insurance is an agreement between an individual and an insurance company that covers medical conditions that are not covered by ordinary insurance. In practice, these can include conditions as varied as cancer all the way to unexpected work-related bodily injuries.

Who is this type of insurance for?

Supplemental packages can be useful for everyone; however, they are especially important for people who have hazardous jobs or highly dependent family members such as children or elderly people.

These types of insurance packages can also be purchased for specific events. For instance, families who are going on hazardous trips like rockclimbing excursions will sometimes take out supplemental packages to cover any unexpected injuries.

Supplemental will pick up the costs that a health insurance plan does not. With both plans enacted, a patient will likely have no deductible and no co-pay for many treatments. The patient will also be covered for a wider variety of medical emergencies.

Supplemental policies can pay in lump sums or in smaller payments over time depending upon the agreement as well as the situation.

Two major kinds of supplemental policies are critical illness insurance and sudden-death insurance. Both of these plans work similarly in that they provide a lump sum payment for a tragic occurrence.

Another major type of supplemental package is hospital indemnity insurance. Hospital indemnity insurance will pay a policyholder a cash benefit if a hospital determines that person will be unable to leave the premises for a while.

Supplemental packages greatly simplify the process of paying for a medical emergency. In most cases, the policyholder will not be responsible for any out-of-pocket expenses. The peace of mind that comes with total coverage is hard to replace.