What is hospital indemnity insurance?
From deductibles to everyday expenses, inpatient stays can be costly. Even with major medical insurance, meeting your deductible and plan maximum may be challenging. Limited Benefit Hospital Indemnity Insurance can help cover your out-of-pocket expenses, allowing you to focus on recovery. You may be eligible to receive a benefit if you have a hospital1 stay of at least 18 hours.
Features of hospital indemnity insurance:
- Benefits are paid directly to you, so you can use the funds where they’re needed most
- If you leave your employer, you can take your policy with you
- Can be paired with a Health Savings Account (HSA)
HSA contributions and investment growth are tax-free, so pairing with an HSA may lead to tax savings. Withdrawals from HSAs are also tax-free if the funds are used to cover eligible medical expenses.
Learn more about saving with an HSA
Do I need hospital indemnity insurance?
Like other supplemental insurance, what’s right for you depends on your situation. Let’s walk through a hypothetical example of when hospital indemnity insurance would help:
After feeling ill, you’re rushed to the emergency room and diagnosed with pneumonia. You’re admitted and stay four days for treatment. Benefits would be paid for each of the four days.
It’s always beneficial to prepare for life’s unexpected moments. Paying deductibles and co-payments on top of your everyday expenses can be stressful. If you would not be able to afford sudden medical expenses, hospital indemnity insurance may give you peace of mind. Learn more at americanfidelity.com/hospital-indemnity
Meet with an American Fidelity account representative to see if Hospital indemnity insurance may be right for you.
This blog is up to date as of March 2023 and has not been updated for changes in the law, administration or current events.