Guide to Hospital Indemnity Insurance

June 27, 2018

Spending time in the hospital is bad enough. Knowing that the inevitable bills are coming is like pouring salt in your wound.

Even with health insurance, your out-of-pocket costs can be excessive, but the cost of a hospital stay could be reduced with a hospital indemnity insurance plan.

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What is hospital indemnity insurance?

Hospital indemnity insurance – also called hospitalization insurance – will pay you benefits when you have a hospital stay. Depending on the policy, other medical services may also be covered.

Why do I need hospital indemnity insurance?

You might be wondering if you really need another health care policy. Consider the following.

  • Health insurance might not cover all your hospital bills. If you have a high deductible, you may end up being responsible for a day or more of your hospital stay, which can cost thousands of dollars.
  • Life is unpredictable. Sometimes illnesses strike or an injury happens and you’re unexpectedly sidelined. As a whole, Americans are woefully financially unprepared for emergencies. Are you one of them?
  • Hospital indemnity plans often include critical illness insurance. Critical illness coverage will help with your costs associated with cancer, heart attack or stroke. You’ll receive a lump sum payment that can be used for anything from child care to moving expenses or transportation.

What are the benefits of a hospital indemnity policy?

Each individual policy will vary, but here’s what you can count on hospital indemnity insurance covering.

  • Hospital stays
  • Time in the Intensive Care Unit
  • Critical Care Unit stays

There are also some plans that cover even more.

  • Outpatient surgery
  • Continuous care
  • Outpatient x-rays and lab work
  • Outpatient diagnostic imaging procedures
  • Ambulances
  • Emergency rooms
  • Doctor’s office visits

What is the cost?

Many factors go into determining how much you’ll pay for hospital indemnity insurance.

Your choice of plan, age, gender, and maybe even your tobacco use will come into play.

Frequently asked questions

Here are some of the most common questions people have about hospital indemnity insurance.

Is there a waiting period?

While there are variances according to the policy, in general, you’ll have a waiting period to meet before you can use your benefits.

How are the benefits paid out?

Hospital indemnity plans pay in cash benefits, which means the amount you are owed is sent directly to you – and not the hospital or doctor.

Can you add dependents?

Some plans allow adding dependent children, but your monthly premium will go up.

Where can you purchase hospital indemnity insurance?

You can obtain coverage through independent health insurance advisors. UROne can help you choose the right plan for your household’s needs.

Is there an enrollment period?

No. You can enroll in a hospital indemnity plan at any point during the year because it’s not part of the Affordable Care Act.

The hospital indemnity insurance solution

You can’t predict what’s coming around the next bend in life, but you can be prepared.

With hospital indemnity insurance, you and your loved ones can protect your health and your financial future.

Can you see how hospital indemnity insurance could be a great gap-filler for you?