A “supplement” insurance policy is one designed to help pay for the out-of-pocket costs associated with treatment for a health issue.  Examples are Cancer insurance, Heart and Stroke insurance, Accident insurance, etc.  Generally, the benefits of the policy are payable directly to you, the insured, instead of to the health care provider.  You can then determine how to use the money — pay your medical bills, your light bill, your grocery bill — or whatever you choose.

Supplements cost much less than regular health insurance, but are typically purchased in addition to it.  Although they can often be used as stand-alone products, the best benefit to the insured is when they are used in conjunction with your health insurance.  In these days of “mandated” health insurance, a supplement enables you to purchase less expensive, higher deductible coverage, knowing that you have a cost-effective supplement to help if you need it.