When you’re hospitalized, chances are there will be expenses that you have to pay yourself, even with an existing healthcare plan. A hospital indemnity insurance plan can cover a percentage of your income while you’re out of work and in the hospital.

 

It provides a cash benefit paid directly to you, which can help with your out-of-pocket expenses. One form of this plan is known as hospital confinement indemnity insurance.

 

While traditional health insurance pays for specific medical services after deductible or copayment amounts are satisfied, hospital indemnity insurance triggers coverage when specific events associated with hospital stays occur.

 

A type of supplemental insurance, hospital indemnity plans pay out when a policyholder checks into a hospital for an overnight stay, entitling them to claim a certain amount – say $450 – against the policy.

 

For each additional night’s stay you can add another $450 on top. A three-day stay at the local hospital would entitle you to $750 and so on.

 

In addition to a hospital per diem, a more robust plan might feature payments per ambulance trip, surgery or maternity visit, or increased payments for intense ailments such as stroke or cancer. Benefits can disburse in lump sums for short admittances or on a daily or weekly basis during longer visits.

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