What would happen if you or a loved one faced high medical costs due to a hospital stay? Deductibles, copays, and other expenses not covered by your health insurance could put a strain on your budget and savings. But Hospital Indemnity insurance provides financial protection for the unexpected.
Hospital Indemnity plans offer affordable coverage that pays cash benefits for hospital admissions and stays to help cover out-of-pocket costs. Benefits are paid directly to you or your selected medical provider and are paid regardless of any other insurance you may have. Policies typically cover:
- A fixed amount for each day you’re hospitalized, e.g. $500-$1000 daily
- Benefits for hospital stays in intensive care units with higher payouts, e.g. $1000-$2000 daily
- Additional lump-sum payments for the initial day of admission and discharge
- Optional riders for surgical procedures, ambulance use, or physician visits during hospitalization
- Protection whether you’re admitted for planned care like a knee replacement or emergency care due to accidents or illnesses
Hospital Indemnity plans aim to protect your savings and financial security when health insurance isn’t enough. While health insurance covers medical care costs, it typically only pays a portion of the total charges, leaving you with out-of-pocket expenses like deductibles, copays, and coinsurance fees. Hospital Indemnity acts as a supplement to fill those coverage gaps.