Imagine this scenario: Your child decides to ride her bike without a helmet and suffers a broken arm and a concussion. You rush her to the hospital for observation. You might think, “No problem, my medical insurance will cover it.”
Not necessarily.
The average three-day hospital stay costs around $30,000, according to healthcare.gov. Meanwhile, nearly 29% of U.S. households have less than $1,000 in savings. Hospital indemnity insurance can help protect your family financially by offering additional coverage beyond standard medical insurance. Here are three things you should know about this supplemental benefit:
1. Hospital Indemnity Is Different from Medical Insurance
Many people assume that medical insurance covers all hospital-related costs—but it often does not. Medical insurance typically only covers specific procedures and services outlined in your plan.
Hospital indemnity insurance, on the other hand, provides coverage for hospital admissions, overnight stays, outpatient surgery, and accident-related inpatient rehabilitation. It can also help cover extra expenses resulting from hospitalization, such as transportation, food delivery, and childcare.
2. It’s Family-Friendly
Hospital indemnity insurance isn’t just for you—it can cover your spouse and children as well. Whether it’s a broken arm, an illness, or a planned hospital stay like childbirth, this insurance can help cover extra costs during hospital visits.
For expectant parents, hospital indemnity may provide additional coverage for extended stays after childbirth, complementing any other health insurance you have in place.
3. It Pays a Lump Sum Directly to You
Unlike traditional medical insurance that pays providers, hospital indemnity insurance pays a lump sum directly to you. You can use this payment however you need—cover household bills, medical insurance deductibles, or even treat your child after a hospital stay.
This flexibility makes it a valuable financial safety net, especially for families facing unexpected hospital visits.
Tip: Open enrollment is the ideal time to review your benefits and consider signing up for hospital indemnity insurance through your employer. It’s a smart way to add financial security for yourself and your loved ones.
