3 Things You Should Know About Hospital Indemnity Insurance

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3 Things You Should Know About Hospital Indemnity Insurance
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3 Things You Should Know About Hospital Indemnity Insurance

3 min read August 24, 2020

Put yourself in this situation: Your child decides to ride her bike without wearing a helmet and ends up with a broken arm and a concussion. You take her to the hospital1 where she needs to stay overnight for observation. From a cost perspective, it’s no big deal, right? Your medical insurance will cover it.

That’s not always the case.

The average three-day hospital stay costs around $30,000, according to data from healthcare.gov. In addition, 29 percent of households have less than $1,000 in savings, one study reveals. One way you can help protect your family financially is by signing up for hospital indemnity insurance, which may be available through your employer.2 Here are three things you should know about this benefit, as you consider your options during open enrollment.

1. Hospital indemnity is different than a medical plan

There’s a common misconception that medical insurance covers all things hospital related, but that’s often not the case. Medical insurance only covers specific services and procedures based on your insurance plan. To be covered for hospital admission, overnight stays, outpatient surgery, or accident-related inpatient rehabilitation, you may want hospital indemnity insurance, which can also help pay for additional expenses you incur as a result of the hospital stay, like transportation, food delivery, and childcare.

2. It’s family-friendly

Hospital indemnity insurance can cover you, your spouse, and your kids, if any of you were to end up in the hospital.3 This could be for a broken arm or an infection or illness.4 If you’re having a baby, hospital indemnity insurance may provide coverage for extra days in the hospital post childbirth, in addition to other insurance you have in place.

3. It pays a lump sum directly to you

Unlike medical insurance that pays your provider, hospital indemnity insurance pays a lump sum directly to you. And the best part is that you can use the money however you need to, whether it’s to cover household bills, medical insurance deductibles, or even a special treat for your child who just got home from the hospital. The financial benefits may be worth investing in.

Open enrollment is a good time to think about signing up for hospital indemnity insurance through your employer. Take our quiz to see what other products might be right for you.

1 Hospital does not include certain facilities such as nursing homes, convalescent care or extended care facilities.

2 Covered services/treatments must be the result of an accident or sickness as defined in the group policy/certificate.  See your Disclosure Statement or Outline of Coverage/Disclosure Document for more details.

3 There are benefit reductions that begin at age 65.

4 There is a pre-existing exclusion for covered sicknesses. See your Disclosure Statement or Outline of Coverage/Disclosure Document for full details.

METLIFE'S HOSPITAL INDEMNITY INSURANCE IS A LIMITED BENEFIT GROUP INSURANCE POLICY. The policy is not intended to be a substitute for medical coverage and certain states may require the insured to have medical coverage to enroll for the coverage.  The policy or its provisions may vary or be unavailable in some states. There is a preexisting condition limitation for hospital sickness benefits. There are benefit reductions that begin at age 65.  Like most group accident and health insurance policies, policies offered by MetLife may contain certain exclusions, limitations and terms for keeping them in force.  For complete details of coverage and availability, please refer to the group policy form GPNP12-AX, GPNP13-HI, or GPNP12-AX-PASG, or contact MetLife. Benefits are underwritten by Metropolitan Life Insurance Company, New York, New York.  In certain states, availability of MetLife’s Group Hospital Indemnity Insurance is pending regulatory approval.  Hospital does not include certain facilities such as nursing homes, convalescent care or extended care facilities. See MetLife's Disclosure Statement or Outline of Coverage/Disclosure Document for full details.