5 types of people who should consider hospital indemnity insurance
Hospital indemnity insurance—also simply known as hospital insurance—is a type of supplemental health insurance that pays benefits when a person is admitted to the hospital. This coverage pays direct cash benefits to policyholders, which means they can use the money for any need, from medical bills to living expenses.
An illness or injury that requires a hospital stay could happen to anyone at any time. However, there are certain circumstances that could make someone more likely to experience hospitalization or high medical bills. Check out these five types of people who could benefit from purchasing hospital indemnity insurance and consider if it’s right for you!
1. Someone with risk factors
Whether it’s a family history of cancer or a predisposition to heart disease, some people are aware that their chances of developing critical illness are greater than others. A quality hospital insurance plan can help these individuals safeguard their savings from the financial impact of a diagnosis so they can focus more on their health.
2. Someone who has a future need for a surgery or procedure
If someone knows they will need a surgery or procedure in the future that requires hospital admittance, they can plan ahead for their out-of-pocket costs by purchasing hospital indemnity insurance. Hospital indemnity policies have waiting periods before coverage kicks in, and waiting periods are longer, typically at least 12 months, when it comes to preexisting conditions, so it’s important to find a policy that works with the treatment timeline.
3. Someone who hopes to be pregnant in the future
Some hospital indemnity insurance policies provide coverage for hospitalization due to normal pregnancy or childbirth after a waiting period, typically at least 10 months. So, if someone hopes to be pregnant in the future, they can plan ahead for their deductibles, copays and coinsurance by purchasing the right policy. This can help new moms focus less on medical bills and more on rest, recovery and their new baby.
4. Someone who has high-deductible health insurance
A high-deductible health plan (HDHP) has a sizable deductible of at least $1,600 for individuals and $3,200 for families in 2024. These are the amounts policyholders have to pay out of pocket before their policy begins to pay. Someone who experiences a hospital stay will likely need to pay their entire deductible, plus possibly copays and coinsurance, totaling thousands of dollars; hospital insurance can help cover these costs.
5. Anyone who wants to protect their family
Everyone hopes that serious illness and injury never affect their family, but it’s still important to be prepared. Hospital indemnity insurance can help families fill in the gaps left by their major medical insurance and have peace of mind knowing they’re protected.
Want more? Check out our blogs, Top 4 reasons to get hospital indemnity insurance and Q&A: Is hospital insurance right for you?
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IMPORTANT: This is a fixed indemnity policy, NOT health insurance
This fixed indemnity policy may pay you a limited dollar amount if you’re sick or hospitalized.
You’re still responsible for paying the cost of your care.
• The payment you get isn’t based on the size of your medical bill.
• There might be a limit on how much this policy will pay each year.
• This policy isn’t a substitute for comprehensive health insurance.
• Since this policy isn’t health insurance, it doesn’t have to include most Federal consumer protections that apply to health insurance.
Looking for comprehensive health insurance?
• Visit HealthCare.gov or call 1-800-318-2596 (TTY: 1-855-889-4325) to find health coverage options.
• To find out if you can get health insurance through your job, or a family member’s job, contact the employer.
Questions about this policy?
- For questions or complaints about this policy, contact your State Department of Insurance. Find their number on the National Association of Insurance Commissioners’ website (naic.org) under “Insurance Departments.”
- If you have this policy through your job, or a family member’s job, contact the employer.