Hospital Indemnity

A short stay in the hospital can cost tens of thousands of dollars. If you are responsible for paying a percentage of those costs, you may still have significant out-of-pocket obligations. Hospital indemnity insurance can keep you from paying too much out-of-pocket for your hospital stays.

Here’s everything you need to know about hospital indemnity insurance.

What Is Hospital Indemnity Insurance

Hospital indemnity policies cover the cost of hospital admission. These plans are not designed to replace major health insurance. Instead, they are supplemental insurance plans that complement your primary health insurance policy.

These plans normally provide policyholders with benefits when they are admitted to a hospital or ICU for a covered sickness or injury. Benefits are typically paid as a lump sum directly to the policyholder, not a hospital or medical facility. That means you can spend the benefit payment on anything.

Hospital Indemnity Insurance Benefits

Hospital indemnity plans normally pay a specific amount of money per day you are hospitalized. For example, if you are hospitalized for 3 days and your policy provides $250 per day, you will be paid a lump sum of $750. Many plans have a limit on how many days the policy will reimburse you for.

While a lot of hospital indemnity plans only provide benefits to individuals who are admitted to a hospital or ICU, there are some policies that also pay a benefit for outpatient surgery, emergency room visits, ambulance services, and stays in rehabilitation facilities.

Should You Buy Hospital Indemnity Insurance?

Buy hospital indemnity insurance if you want the most protection possible against unforeseeable events. When paired with major health insurance and other supplemental insurance policies, you can rest assured that you will have the funds needed to pay for any adverse medical event. If this security sounds good to you, buy hospital indemnity insurance.

Compare Hospital Indemnity Insurance Plans

The benefits offered in hospital indemnity insurance plans vary from area to area and from plan to plan. To find a plan that offers the benefits you think you’ll need, work with an insurance agent to start comparing options. Alite Financial Professionals can help you get started.

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