Types of Supplemental Insurance
Supplemental insurance policies include plans for:
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Cancer
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Heart disease
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Accident
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Disability Income
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Hospitalization
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Medicare Supplement
Supplemental insurance such as cancer and heart disease policies fall into two
main categories. There are those that provide a one-time lump-sum benefit and
others that are expense-based.
Accident and hospital policies are typically indemnity-based; in other words,
the policy will pay specified amounts for certain covered conditions.
Medicare Supplement policies in most states fall into 12 standardized plans.
They are designated by the letters A through L. Plans F and J may also be
offered in high-deductible versions. Plans K and L provide for different cost
sharing and may have lower premiums. Medicare Select policies are similar to
Medicare Supplement polices except that they have lower premiums and certain
network restrictions.
Medicare Supplement Plan A offers basic benefits. Plans B through J offer
additional specified combinations of benefits such as skilled nursing
co-insurance, Medicare Part A and B deductibles, Part B excess charges, foreign
travel emergency, and at-home recovery.
