Hospital Indemnity Insurance (HII) is a supplemental plan that can help relieve out-of-pocket
costs due to an expensive, unplanned hospital stay. It provides a payout based on circumstances
related to hospitalization or other specific health care services. The be nefits are generally paid on
a per day basis or lump sum depending on the selected coverage.
Like many supplemental insurance plans, Hospital Indemnity Insurance is typically lower in
cost, depending on the plan and coverage. Affordable Hospital Indemnity plans are worth
considering to manage unexpected hospital expenses.
Medicare Advantage (MA) plans usually pair very well with Hospital Indemnity plans.
The average length of a hospital stay in the US is about 5.4 days, making an average stay cost
hundreds to even thousands of dollars, so even with health insurance these costs can be
devastating for folks on a fixed income.
Hospital Indemnity plans provide a fixed amount of money directly to the beneficiary upon a
qualifying event. This predetermined benefit can pay for copays, ER visits, and observation
stays, Additionally, there are additional riders that can be added to these policies to help pay for
cancer, ambulance, or skilled nursing related costs.
Hospital Indemnity insurance can be used with a Medicare, Medigap or Medicare advantage
plan. It can help by giving money back during an emergency situation without having to worry
about network guidelines when getting admitted into hospitals.
Hospital Indemnity insurance pays benefits directly to policyholders (unless otherwise assigned)
to help cover those unexpected costs due to hospitalizations, illness and injury. These plans will
require medical underwriting in most cases, so it’s best to obtain the insurance prior to any
hospitalization or major medical diagnosis.
However, there are certain age ranges that may not need to qualify medically or answer health
questions. We recommend calling an Insurance Agent to explore whether or not Hospital
Indemnity Insurance is the right fit. There are many options available depending on
circumstances and an HII plan can be customized to fit various situations and lifestyle choices.