What does a Medicare supplement policy specifically provide?

A Medicare supplement policy is designed to cover gaps in Medicare coverage, which is why this is the correct choice. Medicare, while it provides essential health benefits for seniors and certain disabled individuals, does come with various out-of-pocket costs such as deductibles, copayments, and coinsurance. These costs can be significant and may lead to unexpected financial burdens for beneficiaries.

Medicare supplement plans, also known as Medigap plans, are standardized policies that help cover some of these out-of-pocket expenses, thereby providing additional financial protection for Medicare enrollees. They can cover costs like hospital stays, doctor visits, and preventive care, which are not fully covered by Medicare alone.

The other options do not accurately describe the purpose of Medicare supplement policies. Full coverage without limitations is unrealistic as Medicare and its supplements have restrictions and criteria for coverage. Long-term care insurance is a separate type of insurance designed to cover assistance with activities of daily living and is not included in Medicare supplement policies. Life insurance benefits do not pertain to Medicare supplements; instead, those focus exclusively on health-related expenses.