Workplace Benefits
3 Things You Should Know About Hospital Indemnity Insurance
Put yourself in this situation: Your child decides to ride her bike without wearing a helmet and ends up with a broken arm and a concussion. You take her to the hospital1 where she needs to stay overnight for observation. From a cost perspective, it’s no big deal, right? Your medical insurance will cover it.
That’s not always the case.
The average three-day hospital stay costs around $30,000, according to data from healthcare.gov. In addition, 29 percent of households have less than $1,000 in savings, one study reveals. One way you can help protect your family financially is by signing up for hospital indemnity insurance, which may be available through your employer.2 Here are three things you should know about this benefit, as you consider your options during open enrollment.
1. Hospital indemnity is different than a medical plan
There’s a common misconception that medical insurance covers all things hospital related, but that’s often not the case. Medical insurance only covers specific services and procedures based on your insurance plan. To be covered for hospital admission, overnight stays, outpatient surgery, or accident-related inpatient rehabilitation, you may want hospital indemnity insurance, which can also help pay for additional expenses you incur as a result of the hospital stay, like transportation, food delivery, and childcare.
2. It’s family-friendly
Hospital indemnity insurance can cover you, your spouse, and your kids, if any of you were to end up in the hospital.3 This could be for a broken arm or an infection or illness.4 If you’re having a baby, hospital indemnity insurance may provide coverage for extra days in the hospital post childbirth, in addition to other insurance you have in place.
3. It pays a lump sum directly to you
Unlike medical insurance that pays your provider, hospital indemnity insurance pays a lump sum directly to you. And the best part is that you can use the money however you need to, whether it’s to cover household bills, medical insurance deductibles, or even a special treat for your child who just got home from the hospital. The financial benefits may be worth investing in.
Open enrollment is a good time to think about signing up for hospital indemnity insurance through your employer. Take our quiz to see what other products might be right for you.