YOU ASK:
What is the definition of Supplemental Coverage?
WE ANSWER:
Supplemental Coverage refers to additional face amounts that can add to the basic insurance policy. These riders serve to alter (in most cases to add to) the coverage of the policy, or to alter its terms so as to offer the policyholder more benefits or an increased coverage with respect to risks.
Examples of supplemental coverage include a Cost of living rider (where the face amounts are regularly increased to make up for inflation) or an Accidental death benefit rider (where the insurance company pays an amount equal to the death benefit for a death caused by accident).
Since supplemental coverage provides more benefit, these usually a charged with additional premium.
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More insurance terms around supplemental coverage:
- Surety Bond
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- Ten-Day Free Look Provision
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