Hospital Indemnity Insurance

Hospital indemnity insurance is a supplemental insurance plan designed to pay for the costs of a hospital admission that may not be covered by other insurance. The plan covers employees who are admitted to a hospital or ICU for a covered sickness or injury. And it’s available for companies with as few as two employees.

A welcome financial safety net

Hospital indemnity insurance can be particularly helpful since a majority of Americans don’t have enough savings to cover unplanned medical bills.1 The plan pays cash directly to employees even if they don’t incur any out-of-pocket expenses. The payments can be used for any purpose, including:

  • Medical copays
  • Deductibles
  • Regular expenses, such as food, rent, and utilities

Here’s an illustration of how Guardian Hospital Indemnity Insurance works

Carol goes to the ER for severe abdominal pain and nausea. She has a CT scan that reveals she has gallstones. She is admitted and has emergency surgery to remove her gallbladder. She stays for one night and is released the next day. 

While Carol has medical insurance, she still needs to pay $3,815 of out-of-pocket expenses due to her deductible ($1,500), coinsurance, and other expenses not covered by her plan. Since she has Guardian Hospital Indemnity insurance, her out-of-pocket cost is reduced by 85% to $565.* 

Out-of-Pocket Cost SummaryAmount
Carol’s Initial Out-of-Pocket Costs$3,815
Guardian Hospital Indemnity Total Benefit Paid to Carol$3,250
Diagnostic Exam (CT)$250
Hospital Admission$1,000
Inpatient Surgery Benefit$2,000
Carol’s Net Out-of-Pocket Costs$565
Cost Savings85%

*For illustrative purposes only. Covered benefits and benefit amounts may vary by employer-sponsored plan. See your plan for specific coverage amounts and details. 

Easy, hassle-free enrollment

Guardian Hospital Indemnity Insurance is guaranteed issue, no health questions asked if an employee elects coverage during the annual open enrollment period. 

  • Guaranteed Issue
    • No Medical Questions
    • No Exams Required

Maximum flexibility for you and your employees

Guardian Hospital Indemnity Insurance can be tailored to complement any current medical or supplemental coverage an employee may have — whether it is from Guardian or not. And customizable plan designs enable you to offer coverage that best meets your employees’ needs.

Guardian Hospital Indemnity Insurance is also designed to meet your budget. You can provide coverage as a voluntary benefit — at no cost to your company — or you can pay for all or a portion of the cost.

Best Hospital Indemnity Insurance Plans For Your Family’s Health & Wellbeing

You will be fascinated to know that over 36 million people in the United States get admitted into hospitals every year. Many of these people are not even prepared to pay the cost of hospitals. However some people have health insurance plans, but even good insurance plans can lead to financial crunches. According to reliable sources, the average cost of a 3-day hospital bill is 30,000$. Ironically, the more it may sound expensive, the more it is common among Americans. 

Moreover, the best health insurance plans have limits, and everyone deserves to get the right treatment and medication for any disease or injury. A hospital indemnity insurance plan can help you recover high hospital costs, groceries, and childcare costs. 

If you wonder what hospital indemnity insurance is and why you should consider it, we will answer your every query. 

What Is Hospital Indemnity Insurance?

Hospital indemnity insurance benefits your current health insurance plan by paying most of the costs for hospital stays. Depending on the plan’s policies, hospital indemnity insurance provides cash payments to pay for the extra hospital expenses during the recovery period. Typically such plans pay based on the number of days a patient stays in the hospital.

Also, you purchase Hospital indemnity insurance in addition to a health insurance plan sponsored by an employer, government, or a private insurance provider. You pay a monthly premium to your company for other insurance agencies. And by any chance, if you end up in a hospital due for any reason, you get a fixed amount directly to recover the hospital expenses. 

Not to mention the purchased plan, you could use this help for your deductible, coinsurance, medications, rehabilitation transportation, and home health care costs. We have already told you that you use these benefits during your recovery time. 

How Can Hospital Indemnity Insurance Help You? 

In general, most hospital indemnity insurance plans pay for:

  • Hospitalization costs with or without surgery
  • Critical care costs 
  • Intensive care costs  

Some hospital indemnity insurance plans or higher priced premium plans might cover extra hospitalization-related services such as:

  • Ambulance services.
  • Outpatient surgery.
  • Emergency room visits.

Also, hospital indemnity plans are family-friendly, which means they cover your spouse and children’s expenses. 

Who Can Benefit From Hospital Indemnity Insurance?

Although hospital indemnity insurance doesn’t replace your current medical insurance; but, how do you know whether it will be beneficial for you or not? You might be having several questions like whether you should purchase supplemental coverage or not?

Here are a few valid reasons to consider hospital indemnity insurance:

  • People with chronic conditions like cancer, diabetes, heart disease, or diabetes may lead to hospitalization.
  • For people who have an upcoming surgery or medical procedure where a visit or stay in the hospital is mandatory. 
  • For pregnant women or who plan on getting pregnant, hospital indemnity insurance can help them cover the cost of hospital stay even after childbirth.
  • People who want extra coverage in cases of accidental injuries.
  • People who have a high-deductible medical insurance plan.

Last but not least, hospital indemnity insurance is for people who want peace of mind for themselves and their families. 

Read Also: Medigap Plans In Tennessee For Erasing Your Worries & Stress

Hospital Indemnity Vs. Accident Insurance

There’s a major difference between Hospital Indemnity Vs Accident Insurance plans. 

Accident insurance provides help to pay medical expenses, which may be not covered by your health insurance plan, may be out of our budget, or are caused by accident. Hospital indemnity plans cover supplemental insurance to provide financial aid during critical illness. 

Things To Consider Before Buying Hospital Indemnity Insurance

Here are essential things to consider before buying a hospital indemnity insurance: 

Payment 

When you finally decide to buy a hospital indemnity insurance plan and approach an agency, consider each premium’s payment option and timing. A good health insurance agency would give the patient and their family some time to pay the premium. Also, they should be able to pay the recovery amount on time. In other words, how long does it take for them to pay your coverage? Also, ask whether you will receive a lump sum amount or monthly payments. 

Length Of The Insurance Plan 

The second important factor is to consider the length of the coverage. Although indemnity insurances do not have a term limit, they can have a waiting period. Which is to say how long you have to wait for the insurance company to give you reimbursement. This period can vary from one agency to another, so it’s crucial to understand how many terms your policy will exist. 

“For instance, if you began a plan on January 1, 2021, and this insurance plan has a 90-day waiting period, your appointment date must be April 1, 2021, after the indemnity plan has to pay for it. 

Inclusion Of Family 

A hospital indemnity insurance plan is family-friendly, and it covers the health cost of your family, children, and spouse. Check whether your agency covers that or not. 

Age Restrictions

You must know that hospital indemnity insurance plans start for the people of 18 to 65. After the age of 65, Medicare takes care of health coverage. Such restrictions depend on the agency you opt for. So, check carefully before applying. 

Carefully research and enquire about the things mentioned above to your agent and read all terms and conditions properly. 

How To Apply For The Hospital Indemnity Insurance?

Applying for hospital indemnity insurance is not difficult at all. You have to look for a licensed agency that provides the maximum benefits we have mentioned above. Unlike other products and services, there is no marketplace for health insurance. You have to either search in your nearby area or online. If you find one, ask the right questions and carefully apply the plan that suits your needs. 

Best Options Insurance Agency can help you select the Best Hospital Indemnity Insurance plan that complements health insurance coverage and provides essential financial help for you and your family. Supplemental insurance and hospital indemnity insurance can help you cover the unplanned expenses in advance. Also, we have the best team that will guide you about each plan, so you do not make any mistakes. To know more about our work, visit our site.