Supplemental insurance complements – not replaces – an employer’s core benefits program. Supplemental insurance is sometimes called voluntary insurance, because employees choose the benefits that best meet their individual and family needs. Typical plans include disability, accident, life, cancer and hospital confinement insurance. Supplemental insurance allows employers to offer an expanded benefits package at no direct cost because employees typically pay for these products themselves, usually through convenient payroll deduction.

Supplemental insurance plans typically pay benefits regardless of other insurance the policyholder has. Policyholders can use the money to pay deductibles, copayments and other expenses not covered by major medical plans, such as travel to treatment centers, lodging and child care, or even everyday living expenses.