When you’re hospitalized, chances are there will be expenses that you have to pay yourself, even with an existing healthcare plan. A hospital indemnity insurance plan can cover a percentage of your income while you’re out of work and in the hospital. It provides a cash benefit paid directly to you, which can help with your out-of-pocket expenses. One form of this plan is known as hospital confinement indemnity insurance.

Facts About Hospital Indemnity Insurance

• Provides a fixed daily cash benefit while you stay in the hospital, regardless of hospital fees
• Hospitalization benefits are predetermined and are paid regardless of any other insurance the you have
• A hospital indemnity plan (HIP) is an affordable supplemental coverage plan
• There are HIP choices – from basic to robust policies
• Coverage cost depends on your age and the coverage amount you choose
• Cash benefits are tax free and paid directly to you
• Approval is guaranteed for eligible members without a physical exam requirement
• Even those with pre-existing conditions can get coverage, but it may take some time
• Indemnity policies are available directly from insurers or from insurance agents

What Do Indemnity Health Insurance Plans Cover?

In short, indemnity health insurance plans cover the expenses that you’d normally have to pay for, beyond what your health or hospitalization insurance covers. When you are hospitalized, you’ll face medical and living expenses. Healthcare or hospitalization insurance can cover the medical expenses, but living expenses are not usually covered. Most likely, that expense will come out of your own pocket and can potentially disrupt your retirement and savings funds.

An indemnity insurance policy can help you pay for those living expenses. As soon as you’re admitted to a hospital, the policy goes into effect, providing a daily benefit that supplements your normal insurance policy. The daily benefit you receive does not take medical expenses into account.

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