A visit to the hospital due to illness, a serious health condition, or an accident can prove very expensive, even for those with quality health insurance. The deductibles, copays, and treatments alone can reach tens of thousands of dollars within days.
Hospital indemnity insurance is a type of supplemental coverage that further protects you financially by paying out cash benefits to help cover the costs of hospital stays, treatments, and many other expenses you incur during your hospitalization.
This policy typically pays the cash benefits directly to the policyholder, rather than the medical provider or healthcare facility, based on the number of hospitalization days.
Who needs hospital indemnity insurance?
If you find there are gaps in your health insurance plan based on your family’s unique medical needs, you may consider adding supplemental coverage through a hospital indemnity insurance policy.
You may also consider getting this type of coverage if you feel the likelihood of hospitalization for you or a member of your family has increased. For example, if you have an upcoming surgery, you are planning to start a family, or you have a chronic illness such as diabetes, heart disease, or cancer, hospital indemnity insurance can provide your family with additional financial protection and peace of mind.
How does hospital indemnity insurance work?
Similar to a health insurance policy, you will pay a monthly premium for hospital indemnity insurance. Most plans do not have deductibles or limitations on healthcare providers. They also do not require any medical questions or examinations.
When an unexpected situation occurs that results in a hospital visit, you will receive a cash benefit that you can use for a number of expenses related to your stay, mentioned below.
What does hospital indemnity insurance cover?
Hospital indemnity insurance provides policyholders with an additional layer of protection to their financial health. Depending on your policy, should an unexpected medical emergency occur, you can use the cash benefits to help pay for a variety of expenses, such as:
- Ambulance Services
- Hospital Stays
- Emergency Room Visits
- Outpatient Surgery
- Prescription Medications
- Cost-of-Living Expenses (i.e., Mortgage, Groceries, Childcare)
Your policy may even provide funds that could cover the costs incurred by family members who travel to the area, including their transportation, lodging, and meal expenses.
Hospital Indemnity Insurance: An Added Layer of Protection
Hospital indemnity insurance can provide an added layer of protection for you, your spouse, and your children, giving you peace of mind when unforeseen situations occur.
For more information regarding hospital indemnity insurance and how you can access the right coverage for your family at an affordable rate, contact one of our local agents at Risk Management Partners Insurance Agency.