Many people have heard the term but aren't sure what it means. This plain-language guide explains how supplemental plans pay benefits, who receives the money, and how it differs from traditional health insurance.

Accident insurance and health insurance serve different purposes. Understanding how they work together — or independently — can help you make more informed decisions about your coverage strategy.

Unlike traditional insurance that pays providers directly, cash benefit plans send money directly to you after a covered event. Understand how these plans are structured and what to look for when comparing options.