Navigating Hospital Indemnity
A Hospital Indemnity plan can help by paying the fixed benefit dollar amount you selected when applying, if you have a covered hospitalization resulting from a covered injury or illness, regardless of the amount charged by providers.
There are no restrictions on how you can spend the money. Use the cash benefit to help pay:
- Deductibles, coinsurance, copays (no network restrictions)
- Prescription drugs
- Extended hospital stays
- Rehabilitation
- Household expenses like rent or mortgage, groceries, childcare, housekeeper, etc.
...And dont forget
- Your policy can be tailored to your needs and budget.
- Coverage continues after the first hospitalization, so you’re covered for future hospital stays.
- Includes coverage for you and your dependents.
- Your policy is guaranteed renewable for life.
- Available for ages 50-85.
What is a rider?
In simple terms, a rider is an additional benefit that can be included to your basic health insurance plan. By adding riders, your insurance coverage can be expanded as per your requirement and at a lower cost.
Top Hospital Indemnity Riders:
Hospital Cash:
This rider provides for the daily cash that a policyholder may require for taking care of hospital and other medical expenses during hospitalization. This hospital daily cash benefit will be paid once by the insurance company during the tenure of your policy, and can be used for certain number of days as mentioned in your health insurance plan.
Critical Illness Cover:
Critical illness mainly refers to any disease or illness that is terminal in nature such as a massive heart attack, kidney failure, organ transplant, cancer, tumor or multiple sclerosis. Some insurance companies provide the critical illness cover with their plans, and also the policyholder can purchase this cover as an add-on in his/her policy. The critical illness cover provides immediate lump sum amount irrespective of the total expenses incurred during the actual medical treatment. There are many insurers that provide critical illness rider for 10-15 ailments, however, depending upon the company and requirement of the policyholder, an insurance company may cover up to 38 critical illnesses in case of comprehensive plans.
Personal Accident Rider:
This rider covers compensation for all kinds of accident including permanent total disablement, accidental death, permanent partial disablement and temporary total disablement. The personal accident rider can be added to your basic insurance policy at an additional minimal cost. This waiver provides the insured with coverage for medical expenses, any disability/injury suffered in an accident and can be used for any unplanned expenses. The personal accident rider is also known as double indemnity rider. If the insured dies in an accident then the insurance company pays out additional amount of death benefit. The policyholder’s family gets twice the amount of the policy as a result of death due to accidental bodily injury.
Therefore, health insurance riders were developed so that policyholders with certain medical conditions could benefit in future, especially during hospitalization. So if you have a pre-existing health condition, then your insurance agent would be able to guide you towards the best health insurance plan with add-ons or riders. Riders provide several kinds of insurance protection. If you purchase some add-ons then you can avail better care and coverage at affordable premium.