What Is Supplemental Insurance?
If you have an insurance policy that has coverage gaps, you may need to purchase something called “supplemental insurance.” This means simply that it is in addition to the insurance coverage that you already have. It is usually a secondary payer and only pays after the first insurance has paid.
The most common types of supplemental insurance are health-related insurance that pays directly to you if you’re injured (disability) to help cover your expenses due to lost wages, or that pays uncovered health care costs from your other insurance. Combined with regular insurance it can help mitigate financial crises.
A few types of supplemental insurance are:
- Disability – Coverage you can purchase that will pay cash benefits to you for lost wages, household help, and even for home delivery if you are disabled.
- Accident – Sometimes the coverage you have through your health insurance is lacking so you can purchase additional accident coverage to help cover issues that might come up.
- Health – If your business offers some coverage but it’s lacking, you can go to an insurance agent and buy supplemental insurance to cover what your place of work doesn’t, such as eye care, dental care and maternity coverage.
- Life – In addition to a regular life insurance policy, you may find that you need more insurance as you age. Instead of redoing the first policy it can often be beneficial to pay for a small additional policy.
- Medicare – There are many gaps in Medicare coverage, so getting a supplement is a good idea to help cover things that are missing.
- Gap – Owe more for your property than it’s worth? You can get gap coverage that helps make up this difference if a loss occurs.
Most supplemental insurance really works just like regular insurance, but a lot of times it pays directly to you instead of to others. This which means you’ll be required to file the paperwork yourself. But, if you are short on savings and do not have a high tolerance to risk, you may want to look into getting supplemental insurance.
Look for Gaps in Coverage
To figure out where you need insurance, go over your coverage with a fine-tooth comb. It can help if a qualified agent, with a company you want to work with, is helping you. They can help you figure out where you may be short on coverage. Look at each type of insurance that you have to figure out where you have to come out of pocket too much, or where you have no coverage when you thought you did (such as drug coverage).
Contact me and I will help you figure out if you need supplemental insurance or not. Don’t overlook the value of having supplemental insurance if you need it.
Thanks for your business!
Elliot S. Glass, MBA, MA
FL Licensed Insurance Agent
"Helping you to organize, protect, and grow your business and personal wealth."