Imagine that life insurance is like an ice cream on top of which you can add a whole bunch of extra toppings. In this case, the toppings are the supplementary insurance, useful for a lot of risks they offer you protection for. While the life insurance will financially support the loved ones, in the event something happens to you (a tragic end such in Titanicor Love Story), the supplementary insurance can support you financially when, for example, you get bitten by a dog.
What risks does a supplementary insurance cover? (…a topping ?)?
Here are the most common covered risks: hospitalization, surgery, temporary incapacity to work, medical expenses, fractures, burns, first grade invalidity or permanent disability due to an accident, serious medical conditions and even unemployment. It doesn’t sound good and you really wouldn’t want to think about them, but it helps to be assured.
If something happens to you and you have a life insurance covering these risks, you can ask the insurance company for the reimbursement of the expenses, based on the issued medical records. Based on the incurred risk, the insurance company will pay the insured amount or a percentage thereof. If you were hospitalized or had a temporary incapacity to work, basically, the life insurance guarantees you an amount for each day you were in the hospital or could not go to work for medical reasons.
There is also the case where you are jobless, and the insurance company will pay for your mortgage directly to the bank you contracted the loan from, for a certain period of time, stipulated in the insurance contract – for this you need to have additional unemployment insurance. It is very important to read carefully the insurance conditions because, depending on the insured risk, there may be franchises or limitations, such as the maximum number of days for which compensation is paid or exclusions. Since nowadays, it is easier to get a credit together with the loved one, rather than getting married, it is important to know that the life insurance linked to a credit can cover the amount you owe the bank if something happens to you (remember again Titanic orLove Story). Otherwise said, he will miss you and not the house, as he/she will he be left alone, without the possibility to pay for the mortgage.
Almost any person closest to you can be your life insurance beneficiary. Still, try not to think about your cat, there is certainly someone who loves you more.