Hospital Indemnity in Action

Voluntary benefits continue to rise in popularity, with products like accident, hospital indemnity, and critical illness offering employers and employees additional value by providing cash benefits to supplement major medical deductibles, copays, and coinsurance.

Let’s explore hospital indemnity insurance in action.

What is Hospital Indemnity Insurance?

Hospital indemnity insurance is a supplemental health insurance policy that pays pre-determined cash benefits when an insured is hospitalized for a covered reason.

How does Hospital Indemnity Insurance work?

Here’s an example: Juan has a heart attack and is in rushed to the hospital. He is admitted to the intensive care unit, and then moved to observation for a few days before he is discharged home. Although Juan’s major medical plan will pick up a good portion of the bills, he will still be responsible for his deductibles, his portion of the coinsurance, and any out-of-network services.

Juan files a simple claim, and if approved, he will receive cash to help pay for these bills, replenish lost wages from when he was unable to work, or pay for other items he might need. How Juan uses the cash is up to him!

Who Might Benefit?

According to, the average price of a three-day hospital stay is approximately $30,000. Anyone who could benefit from having additional cash in the event of a hospitalization may be a good fit for Hospital Indemnity insurance.

Hospital Indemnity insurance can provide added financial protection and peace of mind when someone is hospitalized. Contact BCS today to learn more.