What are they, and are they worth looking into?
Hospital Indemnity is one name given to a type of product that consumers can purchase to “supplement” or fill in the gaps of their health insurance plan. Since many employers and Marketplace plans alike are now higher deductible (even HSA qualified) insurance options, many individuals are looking to secure a way to reduce their out-of-pocket exposure if they were to be required to tap into that deductible due to a hospitalization or major health event. Hospital Indemnity plans can often provide that peace of mind. But how do they work?
Most of these types of plans are designed to pay cash to the owner of the contract in the event that they incur expenses related to a specific health event. Hospital Indemnity plans will generally pay a flat dollar amount in the event of a hospitalization. Some will pay an additional amount for certain major illness diagnosis (i.e. cancer, stroke, etc.), and others will even provide additional “indemnity” payments to the consumer.
Whether or not this type of product is a wise purchase is truly based upon the individual consumer’s perspective. I personally cover myself and my spouse with a Cancer and an Accident plan. Both include Preventive benefits that pay cash for simply having the typically annual screenings that we should all have.
Here at Health Insurance Shop, we work with individuals in Fort Wayne, New Haven, Kendallville, Auburn, Angola, Decatur, Huntington, and all other surrounding locations to help them determine if this type of product is a good fit for them. If you are interested in learning more, call my office or shoot me an email at: firstname.lastname@example.org.