Hospital Indemnity insurance, also called Hospitalization insurance or Hospital insurance, is a plan that pays you benefits when you are confined to a hospital, whether for planned or unplanned reasons, or for other medical services, depending on the policy.
These plans are designed to help you fill gaps in your medical coverage by providing cash to help cover deductibles, pharmacy prescriptions and other non-covered expenses that may arise from hospital stays and services.
Many insurance plans have high deductibles or copays for daily stays.
Hospital stays can strain even the healthiest of budgets. And in many cases, you can’t ignore the care you need even if it pushes you financially. Hospital Indemnity insurance plans provide payment for each day spent in the hospital, and for some other qualified expenses as well. That’s money you can use as you choose, whether for hospital bills or those other costs that come up while you’re recovering.