So What is Medicare Advantage?
Hospital Indemnity
If you find yourself hospitalized, it's likely that there will still be expenses you'll need to cover, despite having a healthcare plan in place. A hospital indemnity insurance plan steps in to alleviate some of this financial burden by providing a portion of your income while you're unable to work and hospitalized. This plan offers a cash benefit directly to you, aiding with your out-of-pocket costs. One variation of this coverage is referred to as hospital confinement indemnity insurance.
Indemnity health insurance plans bridge the gap between what your regular health or hospitalization insurance covers and the additional expenses you may incur. When hospitalization occurs, you're confronted with both medical and living costs. While healthcare or hospitalization insurance typically addresses medical expenses, living expenses often remain uncovered. This can strain your personal finances, potentially impacting your retirement savings.
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To address this gap, an indemnity insurance policy steps in to assist with living expenses. Upon hospital admission, the policy activates, offering a daily benefit that supplements your existing insurance coverage. Importantly, this daily benefit is independent of your medical expenses.
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Indemnity health insurance ensures you receive a fixed daily cash benefit throughout your hospital stay, irrespective of hospital charges.
