Hospital Indemnity Insurance
Hospital indemnity insurance, also known as hospital confinement insurance, provides a cash benefit if you are confined to a hospital due to an illness or serious injury. The cash benefit is paid out according to services or procedures delivered to a patient. Some hospital plans may have outpatient and inpatient benefits along with coverage for the cost of lab, xrays and doctor visits.
Similar to other types of supplemental insurance, the hospital indemnity coverage is meant to help you pay for services and needed items not covered by your regular health plan.
There are two kinds of accident policies, including accidental death and dismemberment insurance (AD&D) and accident health insurance. They are often combined and sold together. The benefits vary from state to state due to local insurance regulations.
An AD&D policy will pay you a lump-sum cash benefit if you are the named beneficiary of someone who died in an accident. These policies may also pay smaller amounts if the person did not die but lost a limb, eyesight, or suffered permanent paralysis.
Accident medical insurance, also known as an accident hospital indemnity policy, may pay for medical costs resulting from an accident not covered by your regular health insurance. Some of these policies may also pay for travel and lodging expenses for family members.
Accident supplement policies are popular with healthy people who have high-deductible insurance plans, defraying upfront premium costs while providing a “backup plan” in the unlikely event of a calamity.