Hospital indemnity insurance can be a valuable option if you want added financial protection for unexpected hospital stays. Even with medical insurance, costs like deductibles, copays, and non-medical expenses can add up quickly. This coverage helps reduce financial stress so you can focus on recovery.

Hospital indemnity plans pay fixed cash benefits based on events such as hospital admission and the number of days you’re hospitalized. Benefits are paid directly to you—not to the hospital—giving you flexibility to use the money for medical or everyday expenses. Coverage applies regardless of the reason for hospitalization, as long as it’s covered under the policy.

Eligibility depends on the insurer and plan, but many hospital indemnity policies are available regardless of current health conditions. However, pre-existing conditions may be subject to waiting periods or exclusions before benefits are payable. Reviewing policy details is important to understand how coverage applies.

Hospital indemnity insurance generally does not cover outpatient care, routine doctor visits, or services that don’t involve a covered hospital stay. Benefits are limited to the amounts and duration specified in the policy, and once those limits are reached, no additional payments are made. As with any insurance, exclusions and limitations vary by plan.