What is Hospital Indemnity Insurance?

Hospital Indemnity Insurance is insurance with a monthly premium. If you meet the conditions of the policy (like hospitalization or ambulance ride), the insurance pays you cash. You can use this cash to pay for things your health insurance doesn’t cover like copays, coinsurance, deductibles, living expenses while you recover,

Unlike health insurance, there are no networks. The plan pays cash to you to cover expenses.

What Does Hospital Indemnity Insurance Cover?

In general, most plans pay for:

• Hospitalizations with or without surgery.

• Intensive care.

• Critical care.

For higher monthly premiums, some hospital indemnity plans may cover other hospitalization-related services such as:

• Outpatient surgery.

• Emergency room visits.

• Ambulance services.

Questions To Ask About Hospital Indemnity Coverage

Coverage and cost varies with every hospital indemnity plan. Here are questions to ask so you understand the details of the plan you choose when you enroll.

• If hospitalized, how soon do you receive your cash payments?

• Will you receive one lump sum or monthly payments?

• How many days of hospitalization are covered?

• Does the plan cover your family?

• Are there age restrictions for the plan?

Is Hospital Indemnity Insurance Worth It?

Hospital Indemnity Insurance tends to be lower cost. Costs vary based on how many days and total per day coverage you might choose. Many people try to “fill the gaps” in their Medicare Advantage plan to cover copays and coinsurance based on their individual plan.

Rounding Out Your Health Insurance Coverage With Supplemental Plans

Hospital indemnity insurance is just one type of supplemental coverage that can be used to limit the financial risk of illness and injury. Other options include Accident insurance, critical illness and more.

Choosing A Hospital Indemnity Plan

Ask a licensed health insurance professional to guide you in choosing just the right plan for you.