Hospital Indemnity Insurance

Hospital Indemnity Plans: What You Need to Knows

If you have health insurance, you know that co-pays and deductibles can leave you with out-of-pocket expenses. Hospital Indemnity Insurance is a type of insurance that can help cover hospital co-pays and incidental expenses not covered by your medical insurance.

What Is Hospital Indemnity Insurance?

Hospital indemnity insurance is a supplemental insurance policy that covers expenses not covered by your traditional health insurance policy or Medicare if you are hospitalized. This can include expenses such as hospital deductibles and co-pays.

What Does Hospital Indemnity Insurance Cover?

Hospital indemnity insurance is designed to cover significant expenses in a wide range of events, including hospitalizations, intensive care, and critical care. It can also include coverage for outpatient surgery, emergency room visits, and ambulance services.

What Does Hospital Indemnity Insurance Not Cover?

Hospital indemnity insurance was designed to be a supplemental insurance policy and is not a replacement for a health insurance policy. These plans do not cover basic healthcare needs like:

  • Doctor visits and routine checkups
  • Medical tests
  • Medical devices

Most hospital indemnity insurance plans come with coverage caps and limits. Some common limits on this type of insurance policy are:

  • Daily Benefit: Most plans offer a daily benefit valued between $100 and $1,000. 
  • Total Day Limit: Your plan may limit the total number of hospital days it will cover. 
  • Intensive & Critical Care Benefit Limits: These limits are typically higher than the daily benefit value, but may not be enough to cover the total cost of intensive or critical care. 

How Much Does Hospital Indemnity Insurance Cost?

Premiums for hospital indemnity insurance vary based on your age, health, insurance company, and coverage amount. Young, healthy adults can expect to pay around $10 per month, with prices increasing as you age or if you have pre-existing conditions.

How to Choose a Hospital Indemnity Insurance Plan

When choosing a hospital indemnity insurance plan, it is important to consider factors like payment times, coverage periods, family coverage, and what your current health insurance covers. Make sure you understand how long it will take to receive payment and what coverage caps you need. If you have a spouse or children, a family plan may be a more affordable option.

Get In Touch to Learn More

If you’re interested in Hospital Indemnity Insurance, it’s best to talk to an insurance agent who can help you find the best plans at the best possible prices. Contact an agent to discuss your options and find a quality policy at an affordable price.