Over 36 million people in the U.S. are admitted to a hospital every year, many of whom are not prepared for the cost. Even with proper health insurance, out-of-pocket costs can lead to financial strain—the average cost of a three-day hospital stay is $30,000. And sadly, bankruptcy due to medical bills is somewhat common.
Since even the best health insurance plans have limits, supplemental insurance called hospital indemnity insurance exists to help offset hospital expenses and cover other costs like, deductibles, copays, groceries, childcare and more while you recover.
What Is Hospital Indemnity Insurance?
Hospital indemnity (supplemental) insurance is an insurance plan you can purchase in addition to your health insurance plan sponsored by your employer, the government or a private insurer. The premium is paid monthly, just as you do for other insurance, and if you end up spending time in the hospital, you are paid a fixed benefit amount directly to you to help cover the expenses. Depending on the plan you purchase, you could use the benefits for your deductible, coinsurance, transportation, medications, rehabilitation or home care costs, as well as some expenses incurred as you recover.
What Does Hospital Indemnity Insurance Cover?
Hospital indemnity insurance provides a payout to you based on circumstances related to hospitalization. Typical health insurance has specifications on covered services whereas hospital indemnity insurance can be distributed in whatever way you need so you can prioritize your health.
This type of plan doesn’t have deductibles, coinsurance or network restrictions. Generally, a circumstance that would lead to payout would be hospital, intensive care unit (ICU), or critical care unit (CCU) confinement. Depending on the plan you purchase, outpatient procedures, emergency room, ambulance transport and more could be covered.
It’s also family-friendly, meaning plans can cover you, your spouse and your children.
Who Should Get Hospital Indemnity Insurance?
Hospital indemnity insurance doesn’t replace your medical insurance. But how do you know if you should purchase this supplemental coverage? Here are a few reasons to consider hospital indemnity insurance:
- You have a chronic condition, like heart disease or diabetes, that could lead to hospitalization.
- You have an upcoming procedure or surgery where a visit or stay in the hospital could be required.
- You’re pregnant or plan on becoming pregnant, and coverage could be provided for any extra days you stay in the hospital after childbirth.
- You want extra coverage in case of accidents.
- You have a high-deductible health insurance plan.
- You want peace of mind for worst-case scenarios.
How Much Does Hospital Indemnity Insurance Cost?
Just like most insurance plans, costs can vary based on several factors and the type of plan you choose. We can help you get the best coverage for your needs and budget.
On average, hospital indemnity insurance premiums range from $50 to $400 a month. For the premium you pay, you receive a daily max payout based on the plan you choose. To get a quote most accurate for you and your needs, input your information on our website and we’ll in turn provide you with a zero hassle quote.
