Health Insurance
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Should You Get Supplemental Health Insurance
Supplemental insurance plans have been around for decades. In fact, even middle aged people remember seeing their parents opening such offers that came through the mail. There has been a resurgence in advertising of supplemental insurance and more people are opting to add it to their total insurance package.
How Does Supplemental Insurance Work?
Supplemental insurance is usually a cash benefit that comes to you when the conditions of your policy are met. Some policies go into effect when you are hospitalized and send you a pre-determined cash payment each day until you are discharged. Other policies pay for days you have to stay home from work because of an injury or catastrophic illness such as cancer. There are policies that pay when you’re involved in a car accident, too. You can even get a policy that pays you cash if you are dismembered in any way.
The purpose of this type of insurance is to supply you with cash when you are unable to work. It can be a real help, particularly if you don’t have any sick leave accumulated or supplied.
Do You Need It?
If you have a job that allows you sick leave or are a salaried employee that is paid regardless if you report to work, you probably wouldn’t benefit as intended from supplemental insurance. However, if you are paid hourly and can’t afford to take time off work then supplemental insurance might be worth considering. The funds can be spent to pay your mortgage or rent, buy food, pay other bills or simply deposit in your savings account. You are not obligated to spend the money on anything specific.
Types of Policies
There are three main types of supplemental insurance policies. The first is disease specific; it usually covers you for cancer. Be very sure of what kind of cancer it covers! If you are at low risk of leukemia but are a candidate for lung cancer at some time during your life, be sure that it covers the type and form of cancer that you might contract.
Some supplemental insurance is meant to cover you if you are involved in an accident or die in an accident. Be sure that you know how the policy covers you! It may only pay out for accidents in the home and not when you are traveling, or pay if you’re in a car accident but not if you fall off the roof. These policies can also carry a death benefit so read the policy thoroughly in order to know if it could actually benefit you or your family.
A third type of supplemental insurance gives you a cash benefit if you are hospitalized. It can pay monthly, weekly or daily but is meant to help you meet expenses when you are unable to work.
If You Buy a Policy
If you decide you want supplemental insurance you’ll be pleased at how low the premiums are. However, read the policy and be sure that it will actually serve your needs. A policy with too many exclusions or one that covers a situation you may never find yourself in is a waste of money. Pay attention to the terms and conditions and be sure you’re getting what you are paying for.