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Hospital Indemnity Insurance

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What Is Hospital Indemnity Insurance? 

Hospital Indemnity Insurance is a supplemental insurance plan that covers the costs of hospital admission that may not be covered by the insurance plan subscribed to by an individual.

It is secured in addition to the standard health insurance plan sponsored by an employer, the government, or a private insurer. 

Mostly, a premium is paid to finance the insurance and in cases of emergency health challenges requiring hospitalization, intensive care, or critical care, direct payment is made to offset the costs. 

Coverage and cost vary with every hospital indemnity plan and they are generally less expensive than regular health insurance.

Deeper Definition 

With well over 36 million people who lack the financial muscle to fund their medical visits admitted to a hospital in the US every year, there is a resulting huge financial burden occasioned by unplanned out-of-pocket expenses.

As a result, insolvency due to medical expenses has become increasingly commonplace.

Expenses including:

  • childcare 
  • groceries
  • cost of hospital admission 
  • accident-related in-patient rehabilitation 
  • medical copays
  • deductibles 
  • rent
  • utilities 
  • transportation 
  • medication 
  • home care costs and other expenses incurred as recovery goes on are handled by the hospital indemnity insurance.

People who have/are/want:

  • chronic condition e.g heart disease or diabetes that could lead to hospitalization.
  • upcoming procedures that might warrant hospital visits or stay-ins. 
  • pregnant or intend to be and could have to stay in the hospital after childbirth.
  • extra coverage in case of accidents. 
  • high deductible health insurance plans.
  • peace of mind for worst-case scenarios should certainly consider starting on a plan. 

Premiums charged vary per plan and a daily maximum payout is received based on the plans enrolled for.

In picking a plan for hospital indemnity insurance, consideration should be given to payment time, length of coverage, age restrictions, individual or family needs, e.t.c.

For instance, it can only be obtained by individuals aged 18-65.

Hospital Indemnity Insurance Example

In the case of critical illness insurance, cash benefits are gotten when an individual comes down with a serious illness and has to stay at home during recovery.

In the case of an accident too, such individuals are due payments to help manage the condition and meet their everyday needs while they are on the road to recovery.

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