Accident & Health Insurance

Is Hospital Indemnity Insurance Worth It? An In-Depth Look

3 min read Mar 01, 2023

Unexpected medical expenses can potentially hinder your finances and overall health. And while health insurance helps cover medical expenses, it can still leave you with extra expenses to pay that can pile up. In fact, according to a report by the Kaiser Family Foundation,1 1 in 4 Americans owe $10,000 or more in medical debt, even those with medical insurance.

Hospital indemnity insurance can help you handle those hospital bills and the additional expenses that may come up from spending time in the hospital.

How does hospital indemnity insurance work?

Hospital indemnity insurance is a type of supplemental insurance that can help cover costs associated with hospital stays.

Hospital indemnity insurance plans offer a payment that can be used for anything you see fit, from expenses such as deductibles, co-pays, coinsurance, medications, and rehabilitation to everyday expenses, like childcare, gas, and groceries.

How much is a hospital stay per day?

According to data from healthcare.gov2, the average three-day hospital stay costs around $30,000. Families and individuals can accrue debt due to a medical emergency, illness, or ongoing health procedures. One study found3 that less than four in 10 Americans have enough in their savings to comfortably afford an unexpected $1,000 expense.

Here are some reasons you may want hospital indemnity insurance:

  • You’re pregnant or planning for a baby. Hospital indemnity insurance may provide coverage for extra days spent in the hospital after giving birth.
  • You or a family member have a chronic illness. For those with chronic medical conditions — like cancer, diabetes, or heart disease — hospital indemnity insurance can cover your frequent hospital visits.
  • You have an upcoming surgery or procedure. You may want hospital indemnity insurance for a scheduled hospital visit, overnight stay, or outpatient surgery.
  • You want added coverage in case of emergencies. It could be beneficial to have extra coverage if an unexpected accident or illness results in a hospital stay for you or a loved one.

Advantages of hospital indemnity insurance

There are many potential advantages to having hospital indemnity insurance. For a full list of coverage and benefits, make sure to read your provider's policy, as coverage will differ by provider. But in general, here are some of the advantages that may come with a hospital indemnity policy.

It provides a lump sum to use as you see fit

Since money is sent to you directly, you get to choose how it’s spent. As mentioned earlier, you can use the money toward hospital expenses or for things related to recovery, such as transportation costs, food, and childcare.

It can cover you and your loved ones

Often, hospital indemnity insurance also covers your spouse and children if they’re admitted to the hospital. Look for coverage that best fits the needs of your household. Anything from a broken bone to a chronic condition may be covered for everyone in your family.

It often offers coverage that is portable

In many cases, your hospital indemnity coverage will remain the same even if you change jobs or move somewhere new. Some hospital indemnity plans will even offer coverage after the policyholder retires or goes on Medicare.

It provides added protection

Hospital indemnity insurance could provide the additional assistance you may need for the health and financial security of you and your family.

What to look for in a hospital indemnity plan

Before selecting a hospital indemnity insurance plan for you and your family, consider the following factors:

  • Cost: The cost of the plan will depend on the provider; however, it may be less expense than you’d think.
  • Length of coverage: Check to see how many days the policy covers you for.
  • Payout terms: Find out how long it takes after your hospital stay for you to receive an insurance payout.

Get information about MetLife Hospital Indemnity Insurance

Explore the benefits

This article is intended to provide general information about insurance. It does not describe any Metropolitan Life Insurance company product or feature.

1 “ Health Care Debt In The U.S.: The Broad Consequences Of Medical And Dental Bills”, 2022

2 “Protection From High Medical Costs,”, 2021

3 “Survey: Fewer than 4 in 10 Americans could pay a surprise $1,000 bill from savings”, 2021