Hospital indemnity insurance is a type of insurance that pays a fixed amount for each day that you are in the hospital. Some plans will pay up to two years. Hospital Indemnity Insurance helps protect your financial independence if you are faced with a hospital stay.
Some types of hospital indemnity insurance will pay the specified daily amount even if you have other health insurance. Others may coordinate benefits, so that the money you receive does not equal more than 100 percent of the hospital bill.