No one likes to think about the possibility of a hospitalization, but the very likelihood is inescapable. Think about it. Have you or anyone in your family ever had an accident that resulted in a hospital visit? Hospitalizations are more common that we think. It could be due to an injury, an illness, surgery or even maternity.
Medical insurance offsets some of the treatments costs for injuries or illness that result in a hospital admission. But what about your out-of-pocket expenses like your deductible? The average cost of a one-day hospital admission is over $3,950 and, depending on your medical insurance, some of that financial burden could land on you, the patient.
Hospital indemnity insurance provides a hedge against this possibility, paying a fixed, lump-sum benefit to help cover expenses resulting from a covered hospitalization. The benefit is paid directly to you. The benefit schedule specifies payment amounts for evens such as hospital admission and daily room and board.
Medical insurance is a necessity to cover treatment costs for a hospitalization. However, with the prevalence of high deductible plans, there can be a very large financial burden on the insured before the medical policy will defray the cost of a serious medical event. But treatment costs are only one piece of the financial puzzle when someone is hospitalized. Lost wages and increased household expenses, paired with the leftover costs medical insurance does not cover, such as co-pays and deductibles, can mean bills piling up just when you are least able to pay them.
Think about this: You buy life insurance in the event you die. You buy disability insurance in the event you cannot work for a period of time because of an illness or injury. And you buy medical insurance because you are pretty sure you are going to need it! Hospital indemnity insurance is like that: the odds are good you or someone in your family is going to experience a hospitalization at some point. And you can elect coverage for you, your spouse and your children.
You cannot be turned down for this insurance if you are an eligible employee, enrolling during your enrollment period. Coverage is guaranteed and there is no medical underwriting.