Definition

Insurance required by law or regulation for certain activities or assets. It ensures that key risks are covered to protect the public.

What to consider

  • Review the cost versus benefit of optional coverage.
  • Determine if optional insurance fits your specific needs.
  • Understand any limitations or exclusions.

Real world scenarios

  • A policyholder chooses optional add-on coverage for dental services beyond the standard plan.
  • An employer offers optional vision insurance as a supplement to the core health plan.
  • An individual opts for optional travel insurance when booking a vacation.

Related terms

Insurance & Financial Protection