Critical Illness Policies

• These policies, known as "specified illness" plans, pay cash benefits to you in the event you are diagnosed with certain critical illnesses such as heart attack, stroke or cancer. Some pay in a lump sum, while others pay per qualified treatment. Since payment is for critical illness, most preexisting conditions are not considered a factor for coverage except with cancer plans. For cancer plans, most companies require a minimum of five years cancer-free in order to qualify for coverage.
  
  

Accident and Hospital Indemnity Plans

• Accident plans pay benefits for any unforeseen injuries that may occur. These plans will not pay for prior injuries, and in order for the accident to qualify you must seek medical treatment within a certain time frame, usually 72 hours. A hospital indemnity plan pays a specified amount for inpatient or outpatient procedures and a benefit for the time spent in the hospital. Preexisting conditions are usually covered after 12 months, but this may vary by carrier so you should confirm the exclusion period before you apply.
  
  

Medicare Supplement Plans

• Also known as "Medigap" plans, these supplemental policies were designed to fill in the gaps that exist in Medicare coverage. There are 12 standardized plans from "A" to "L," and each plan includes different benefits. The prices for each also vary from plan to plan and company to company. Preexisting conditions have a waiting period of six months for coverage, but if you have previous medical insurance or have had Medicare for six months, you will not be subject to exclusions.