1 – What it is
Supplemental insurance is a type of insurance package that is meant to “cover the holes” in a primary insurance package. For instance, this is a very often used technique in the medical industry. People with Medicare will often purchase Medigap policies in order to keep from having to pay co-pays and deductibles before the insurance company will kick in with its part of the payment.
2 – Who it is for
Supplemental policies are usually meant for people who are unwilling to pay deductibles or other large out-of-pocket expenses. Supplemental packages can also be used to shore up primary insurance packages that are known to be unusable for the current situation of a person or a business. Anyone who could afford a supplemental package is eligible for one; however, some of them do require a certain type of primary package. For instance, this is the case for Medigap coverage. Before anyone may purchase Medigap coverage, a Medicare policy must be in place for that person.
3 – How it works
A supplemental policy will usually kick in when the primary policy does not. As a matter of fact, most supplemental policies are geared specifically for this role. Because the primary role of a supplemental policy is the convenience of the insured person, it can be rewritten in order to increase this convenience so that there is virtually no out-of-pocket payment for a particular action. However, each supplemental policy has the ability to be different from its neighbor, so all aspects of it should be discussed with the underwriting insurance company.
4 – Different types of coverage in existence
There are supplemental policies for all kinds of primary policies. Businesses and people who are on medical insurance under the government can obtain supplemental policies. However, there are also many policies that are meant for personal use. Supplemental policies may also be added on for a short-term use. People who are going on high-risk vacations may use supplemental policies.
5 – Major benefits
The major benefit of a supplemental policy is that it will cover the costs that the primary policy does not.