Insurance gives the policyholder a financial safety net against potential problems. Some people purchase life insurance so their family will have financial support following their death. Someone may purchase disability insurance, in order to make sure their income is replaced if they are disabled and unable to work.
These are examples of primary insurance. Primary insurance provides financial assistance to people, and helps provide their basic needs such as healthcare and missed income. However, this type of insurance may not meet a person’s total needs. To prevent this, some people purchase supplemental insurance.
Supplemental insurance covers the gaps left by another insurance policy. For example, a person might have health insurance. That insurance may help, but not provide enough to cover all of their needs. Perhaps they’re still paying hundreds of dollars for prescription medications, long term hospital stays or doctor’s visits. Supplemental insurance can help pay for the expenses their existing health insurance does not cover.
This type of insurance is usually offered to a policyholder in conjunction with their existing policy. The policyholder has the option of buying the supplemental insurance policy. The supplemental policy is usually available from the same company that offers their primary policy. This allows the policyholder to purchase a complete insurance package from the same insurance carrier.
It is also possible for a policyholder to buy supplemental insurance after they’ve purchased their primary coverage. This usually occurs when the policyholder discovers the gap in coverage only after an incident occurs. Many people like having the security of complete insurance coverage.