5 reasons hospital indemnity insurance can help your entire family

If you have to be hospitalized for an extended period of time, here’s a type of insurance that could help.

One minute you’re fine, the next minute you could be rushed to the emergency room in an ambulance. And if you end up in the hospital, you’re not only worried about your own health but also how you’ll pay for the bill. Who’ll support your family while you’re there?

It’s a valid concern; the average 3-day hospital stay is around $30,000. If you have health insurance, most of that bill may be covered, depending on your policy, but over time those out-of-pocket costs could really add up.

In this situation, hospital indemnity insurance could help you and your family. It’s all about the additional protection, says Adam Rosenfeld. He’s president of Rubicon Benefits in Melville, New York, a division of World Insurance Associates. “That’s what hospital indemnity insurance is: It’s betting to protect you in the event that you have to have a hospital stay.”

Read on to learn what hospital indemnity insurance is, and why it may be worth it for your entire family.

Interested in exploring hospital indemnity insurance? Call a licensed insurance agent at (800) 827-9990 to talk about plans, or browse your options online today.

What is hospital indemnity insurance?

Hospital indemnity insurance — also called hospitalization insurance or hospital insurance — helps people and their families when they are hospitalized or receiving medical treatment in a hospital, says Rosenfeld.

It helps to cover out-of-pocket expenses that are associated with hospital stays, such as:

• Copayments
• Deductibles
• Nonmedical costs

“It’s becoming more and more popular because so many health insurance plans now have high deductibles,” he notes.

Hospital indemnity insurance is a type of supplemental insurance. That’s a type of insurance plan you pay for in addition to your regular health insurance plan. To that end, it’s important to remember that hospital indemnity insurance isn’t a substitute for health insurance.

Is hospital indemnity insurance worth it?

There are several different reasons why hospital indemnity insurance may be beneficial for your family, says Rosenfeld. Here are some of the top reasons:

Reason #1: You have flexibility with your benefits.

Hospital indemnity insurance provides a cash benefit that you can apply to your hospital stay. You may opt to put that money toward your deductible or pharmacy prescription costs. Or you can also use it for noncovered expenses, such as transportation to and from the hospital, or even for childcare for a dependent.

All you need to do is fill out a claim form, submit the claim form with copies of your receipts, and wait for your check.

That money is coming back to you — so you can use it as you see fit, explains Rosenfeld. “If you can’t work while you’re in the hospital, you still need a way to pay your mortgage or rent,” he points out.

Reason #2:

You may not have to worry about networks. Most hospital indemnity insurance plans have no network limitations. Just keep in mind that your health insurance plan may require you to stay within certain networks and with certain providers, notes Rosenfeld. That’s so that you don’t get hit with any surprise out-of-network costs.

Some hospital indemnity plans also encourage you to choose providers in a certain network by offering to pay them directly, so you don’t have to fill out a claim form.

A hospital indemnity insurance could help cover you and your family during an extended hospital stay. Call a licensed insurance agent at (800) 827-9990 to talk about plans.

Reason #3: You don’t have to pay a deductible.

Many hospital indemnity insurance plans offer $5,000 to $10,000 worth of coverage, says Rosenfeld. This will often be enough to cover any deductible payment you may face because of your hospitalization.

“Rather than having to shell out $5,000, you can spend $100 a year or even less on a policy that helps you pay your deductible,” points out Rosenfeld.

Since you’ve met your deductible, you’ll have to pay less for any follow-up visits or procedures you may need once you’re out of the hospital.

Reason #4: You can get coverage for your entire family.

Hospital indemnity insurance offers coverage not just for you but also for your spouse and/or children. It’s particularly appealing if you’re a young, active family who doesn’t have much to spare in terms of savings. That way, you can go on your annual ski trip, and if someone takes a tumble on the slopes and requires an emergency airlift to the nearest hospital, you’ll have the coverage you and your family may need.

Reason #5: Coverage is renewable until the age of 65.

Most hospital indemnity plans allow you to automatically reenroll until you hit age 65, says Rosenfeld. After that, hospital indemnity insurance is available, but it may be more expensive or come with more restrictions.

Bottom line: If you’re hospitalized for an extended period of time, there are ways of offsetting the costs with the right type of supplemental plan. For the right person or family, that could be a hospital indemnity insurance plan.

Still have questions about hospital indemnity insurance? Call a licensed insurance agent at (800) 827-9990 to talk about plans.