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Caution needed

Purchasing supplemental policies comes with only on some caveats. Companies that sell cancer insurance and long-term care insurance should approve potential buyers before sale. Health is one of the main factors influencing approval, Waggamon said. If you are already diagnosed with cancer, or are already in need of long-term care insurance, the majority insurance companies will not approve you for the policy.

Even if a purchaser is in good health, that does not necessarily mean these policies are right for them.

People should consider price before purchasing supplemental policies, Hudson said. Because these policies are considered as extras, Hudson recommends prioritizing your coverage before you buy.

Before you buy, she said, "Make sure your basic health care is taken care of. If you are able to afford the coverage after that, then ok. Some folks may have the opportunity to buy supplemental insurance through their employer. You have to consider all those factors. Folks must work with an insurance agent or family or financial advisers to determine whether or not they can afford the coverage given their financial circumstances."

It is easy to get confused about what each policy provides and what it does not. To clear up any discrepancies, Hudson recommended chatting with an insurance agent.

"Have all the information before you sign and make that decision," Hudson said. "Basically, the question is, 'Do I need this coverage?' Confirm that the person answering that has your best interests in mind."



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