"There are basically two types of supplemental insurance coverage. Group Supplemental covers employers and employees, while individual coverage is more geared toward an individual without going through a group policy.
Group Supplemental Insurance
Supplemental insurance helps employers expand their employee benefits and gives employees more flexibility in their benefit package. Employees can choose which supplement they prefer: accident, cancer treatment, hospital confinement, specified health event, supplemental life, etc. The premium is then deducted from their paychecks.
In the event of a claim, benefits are paid directly to the policyholder to be used as he/she determines.
Employees can keep the supplemental coverage if they leave the employer and can maintain the same level of protection whether employed or unemployed. And, employers appreciate the convenience of paying premiums through a payroll deduction.
Individual Supplemental Insurance
Supplemental insurance can provide for benefits paid directly to the policyholder in the event of accident, disability, cancer treatment, hospital confinement, or a specified health event.
This insurance allows for the flexibility of using the cash benefit for whatever the policyholder chooses (to pay medical bills, as an income supplement, etc.).
