Supplemental Health Plans are generally policies purchased from an insurance company to cover a variety of different occurrences such as:
Critical illnesses plans, for such events as a heart attack or stroke.
Cancer plans that pay a specific amount of money when an insured party is diagnosed with cancer. The funds are paid out to alleviate the costs of treatment.
Hospital indemnity plans pay a specified amount to an insured party for hospital stays or outpatient surgery to offset out of pocket costs like deductibles or co-pays when used in conjunction with a health insurance policy.