Hospital Indemnity
A hospital indemnity plan can supplement your health insurance coverage by paying out a lump sum when you have a hospital stay. This payout can be used to pay for costs directly connected or entirely unconnected to your hospital stay.
You can usually count on your health insurance plan to cover a majority of your costs during a hospital stay, but there are some costs that will be out of pocket. These can quickly add up, especially if you’re having an extended stay. Luckily, there is a supplemental option that can take some of the financial sting out of a hospital trip.
What Is Hospital Indemnity Insurance?
Hospital indemnity insurance plans can be used to pay for many of the out-of-pocket costs that are only partially covered or not covered at all by your health insurance. If you’re admitted to the hospital for a covered cause, your hospital indemnity plan’s carrier will begin making payments directly to you. Your payout can vary from plan to plan and for how long your hospital stay lasts. Similarly, some indemnity plans may pay out for hospital-associated services like outpatient surgeries or emergency room visits. This can make shopping around or getting help from a local, licensed insurance agent worth it.
What If My Insurance Plan Covers Most or All of My Costs?
Even if your costs are completely or mostly covered by your health insurance plan, you are still entitled to your plan payout. These funds can be used as you see fit, paying for costs that may or may not be associated with your hospital stay. The payout can cover any costs above and beyond your health insurance coverage during your hospital stay or costs you accrue during your recovery for services like long-term care or physical therapy. They can even be used to assist with household costs or lost wages. A hospital indemnity plan’s payout is your money, and you may use it however helps you recover best.
When Does Hospital Indemnity Insurance Make Sense?
This is a great question, and there isn’t a single defining characteristic that answers this one way or the other. It all comes down to your individual health and needs. The best signifier is how often you anticipate needing hospital care in the coming months and years. Depending on your predicted need, a hospital indemnity plan may make more sense to ensure your finances are protected.
You can’t always predict when you’ll need inpatient care, so there is usually some value in having your bases covered. It’s also worth remembering that unexpectedly needing the hospital is often due to emergencies or more severe reasons than routine or expected hospital stays. These can quickly become even more expensive, especially if you haven’t been saving for them.
If you would like to know more about hospital indemnity insurance plans, discuss if a plan is right for you, or see what options are available in your area, our door is always open to you. Use our website to learn more about our services and the products you’re interested in. When you’re ready, give us a call.