Benefits

• Supplemental health insurance offers low cost of coverage because of lower benefit payouts, cash payments made directly to the insured for covered occurrences, and benefits for pre-existing conditions with a typical waiting period of 6 to 12 months. Supplemental health insurance also covers lost wages and living expenses not covered by traditional insurance.
  
  

Types of Policies

• Basic supplemental health insurance plans for preventative care cost the least and cover doctors' office visits and laboratory tests without the deductibles or co-payments required by regular health insurance. The most common type of supplemental health insurance policy available is for Medicare recipients to help defray the cost of deductibles and co-insurance.
  
  

Disease-Specific Policy

• This policy offers cash benefits for specific diseases, such as cancer, and pays a minimum benefit daily, monthly or per medical procedure. There is usually a policy maximum, but you determine how you want to spend the money.
  
  

Accident Policy

• A cash benefit from this policy is paid to the insured or to the insured's beneficiary in the event of death. Payment is only made for accidents covered by the policy, and the amount paid may be determined by the seriousness of the injury.
  
  

Hospital Indemnity Policy

• This policy pays cash to the insured daily, weekly or monthly if hospitalized, but there is a minimum hospital stay before benefits are paid.