Merritt Personal Lines Manual: Supplemental Insurance

In addition to all the types of coverage discussed so far, some insurance agents or insurance companies may try to sell you supplemental insurance policies. These are designed to pay in addition to your regular medical coverage.

They pay limited benefits, such as a daily dollar amount if you are hospitalized (these are known as hospital income policies) or expenses incurred to treat a specified "dread disease," such as cancer or a stroke.

Beware of these policies. The coverage often will duplicate what you are paying for in your comprehensive medical plan. Be sure you understand the limitations and exclusions -- and whether or not you have any real need for this coverage -- before you buy.