Hospital Indemnity Insurance is a supplemental form of health insurance. Instead of waiting for your health plan deductible, hospital indemnity is there to assist you the moment you are hospitalized.
How Does Hospital Indemnity Work
For each day you are hospitalized, your hospital indemnity plan will reimburse you a set sum of money. This sum does not depend on your current coverage, and you can use it to help pay your health plan coinsurance or pocket the money if you have enough to cover your medical expenses. Hospital indemnity is entirely separate from your regular health insurance plan.
Hospital indemnity plans pay you a fixed benefit for being admitted or staying overnight in a hospital or the intensive care unit. Your plan may also pay you a gift for emergency room treatment or outpatient medical services. Some even offer set benefits if you are diagnosed with a particular condition. If you want protection against certain medical events, look to critical illness protection, which provides help when you are diagnosed with specific requirements.
You may be able to purchase an individual hospital indemnity plan or have the option to add family members to your policy. Depending on the terms of your policy, there may be eligibility requirements or waiting periods for their coverage.
Do not purchase hospital indemnity coverage alone; it complements your existing health insurance plan. It doesn’t cover your medical bills from visiting the doctor or hospital and is meant to help you afford your out-of-pocket medical expenses. Purchase the health insurance coverage you need before supplementing with hospital indemnity.
Advantages of Hospital Indemnity Insurance
Hospital indemnity can be a great way to fill gaps for expenses not paid by your health insurance. With your health insurance, you can anticipate paying monthly premiums, deductibles, copayments, and coinsurance. You pay the total cost of your medical expenses until you reach your deductible. After that point, you pay copayments and coinsurance as a form of cost-sharing with your insurance company. The benefits from hospital indemnity policies can help you deliver these out-of-pocket expenses.
Who Is Hospital Indemnity Insurance Suitable For
There are quite a few people who could benefit from hospital indemnity. Take these things into consideration when you are thinking of purchasing a policy.
People who are likely to be hospitalized or have a family member in a poor state of health would benefit from the extra cost protection hospital indemnity offers.
People with less-than-extensive health insurance coverage for hospital stays will want to purchase hospital indemnity as a safeguard against potential out-of-pocket costs.
People who would have difficulty paying for a hospital visit’s unexpected costs will want to select a hospital indemnity policy to reinforce their emergency funds.
