Hospital indemnity plans are a unique supplemental insurance product that pays you when specific events associated with hospital visits occur in your life. The way these plans work can be quite complex, so please continue reading to learn how hospital indemnity plans can help make your health care needs more affordable.
How Do Hospital Indemnity Plans Work?
The purpose of hospital indemnity plans is to pay for hospital costs that may not be covered by other forms of insurance. This form of insurance can be beneficial because many Americans do not have enough savings to reasonably afford unexpected medical expenses.
When you purchase a hospital indemnity plan, certain events may trigger your plan to pay you a set amount. For example, your plan may offer you $250 for every night you spend in a hospital bed. If you spend three nights in the hospital, your plan will allot you a total of $750. This money can be used for any purpose, but many policyholders use the extra money to pay medical copays, deductibles, and other expenses.
Hospital Indemnity In Action
Imagine that you own a hospital indemnity plan and get admitted to the hospital for an emergency appendectomy. Although you have medical insurance, you may still need to pay a significant amount of money to cover your policy’s deductible. With a hospital indemnity plan, you will be granted a benefit payment that helps you reach your deductible without cashing out your savings.
Who Should Buy Hospital Indemnity Plans?
Hospital indemnity coverage is ideal for individuals who do not have significant savings available. If you have an emergency medical event, your indemnity plan will help you manage the cost of treatment. Definitely consider this form of coverage if your existing health insurance plan has limits on hospitalization or medical coverage.
People who are pregnant or expecting to have a child soon can also benefit from hospital indemnity plans, because they also provide payments for maternity visits and other childbirth-related events.
What Is Covered By Hospital Indemnity Insurance
Hospital indemnity plans generally pay for hospitalizations, surgery, intensive care, and critical care. If you want a broader range of benefits, you may have to purchase a premium plan. Premium indemnity plans have higher premiums, but may cover additional costs, such as outpatient surgery, emergency room visits, and ambulance services.
Average Hospital Indemnity Plan Cost
There is no exact number that can be estimated for the cost of hospital indemnity insurance. Plan costs vary greatly based on the level of benefits featured in the plan. For example, plans that offer minimal benefits can be found for as low as $7. For more comprehensive coverage, you can find more extensive plans that cost up to $463 per month.
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Is Hospital Indemnity Insurance Worth It For You?
Before purchasing hospital indemnity insurance, think about your health history. If you’ve experienced frequent health events in recent years, you may be able to capitalize on the valuable benefits offered by a hospital indemnity insurance policy.
To find a plan that fits your budget and offers the benefits you need, get help from the talented agents at Texas Medicare Advisors. Our team is experienced and knowledgeable, so you can trust us to find you the best deal in your area. You can reach us at 512-900-3008.