What happens to a Medicare Supplement plan if the policyholder dies?

When a policyholder of a Medicare Supplement plan passes away, the correct outcome is that the policy may end, or benefits may be provided to surviving family members under certain circumstances. Typically, Medicare Supplement plans, also known as Medigap, are individual contracts that do not automatically transfer to family members upon the death of the insured. While some states may have specific regulations that allow certain benefits to be continued for surviving dependents, in most cases, the policy terminates with the policyholder's death.

It's also important to note that beneficiaries do not have the legal right to continue the policy unless designated options are available, such as in cases where the policy specifically allows for continuation or conversion for dependents. The remaining family members would need to explore other coverage options or obtain new policies if needed.

This understanding ultimately reinforces the nature of Medicare Supplement plans as individual coverage, and highlights the need for survivors to be informed of their options following the death of the insured.