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 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.
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.
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.