Hospital Indemnity plans provide a benefit for every day one is hospitalized. The plans pay out regardless of the amount of hospital expenses actually incurred. They are typically used as supplemental coverage.
Hospital indemnity insurance provides a fixed daily, weekly or monthly benefit while the insured is confined in a hospital. The payment is not dependent on actual hospital charges, and is most commonly expressed as a flat dollar amount. Hospital indemnity benefits are paid in addition to any other benefits that may be available, and are typically used to pay out-of-pocket and non-covered expenses associated with the primary medical plan, and to help with additional expenses (e.g., child care) incurred while in the hospital.
What Do The Plans Cover & Cost?
These plans do not cover all the hospital expenses but often they do reimburse deductibles and coinsurance payments by paying a specified amount directly to the policy owner each day they are hospitalized. Depending on the amount of coverage that is purchased, one can have peace of mind that they can be receiving money to cover their mortgage, rent, food, utilities, and other daily expenses.
Is there a cost?
These policies are paid with a stable premium. The premiums do not change unless there is a change throughout the whole state in policies.
Are there limitations?
Certain policies have limitations on pre-existing medical conditions. Other plans require that you be hospitalized for a specified number of days before the benefits will be paid.
What are your daily benefits?
The daily benefit is the amount that was determined when you took out the policy. Every day you are in the hospital, unable to work, you will be receiving money from your Hospital Indemnity policy to cover the costs of daily living
Who needs this and why?
The average length of hospital stays every year for those under the age of 65 is around 5 days and for those 65 and older is around 5.5 to 6 days. Serious illness and or injury can happen without warning and bills can pile up and you just need some help. A hospital confinement policy can offer daily benefits to give you some peace of mind when there’s nothing you can do.