Define Supplemental Insurance Plan

A supplemental insurance plan is one that supplements, or "fills the gaps" in a primary insurance policy. Some supplemental insurance policies cover otherwise uncovered areas, while others pay portions of claims not covered under primary plans.

Supplemental Insurance Basics

• Supplemental insurance is sometimes referred to as secondary insurance. It is not provided by employers as part of group benefits as routinely as primary health, dental and other insurances. Supplemental policies often help with more routine or indirect expenses tied to health, dental, auto or other uses.

Health Basics

• Supplemental insurance is often purchase for health, dental and auto insurances. With health insurance, supplemental insurance may pay for expenses incurred when you travel or use childcare to take care of medical needs. Some policies cover deductibles, co-insurances and other patient portions of regular medical claims not covered by primary health.

Considerations

• As with primary insurance, supplement insurance plan rates vary by risk factors. Supplemental health benefits cost more if you are more routinely in need of medical care. Some plans pay for co-payments or enrollment fees of primary insurances. You must also consider payout limits, preapproval requirements, claims process and service reputation of the provider.