The average three-day hospital stay in the U.S. can cost around $30,000.1 Health insurance policies may help pay for a significant portion, but they don’t always cover the total cost. So, a hospital stay could still cause someone financial strain.
Hospital indemnity insurance can be an affordable way to help people fill coverage gaps for hospital stays, allowing them to receive treatment and recover with less worry regarding the financial consequences. Read on to learn how hospital indemnity insurance works and what it covers.
Hospital indemnity insurance is a type of supplemental health insurance that assists with the costs of being hospitalized. You pay premiums and, in exchange, receive policies that help you pay for covered hospitalizations or other qualifying treatments in a hospital.
Hospital indemnity insurance can complement other supplemental policies, such as accident insurance and short-term disability insurance, quite well. Having these policies together can help prepare you financially for many unexpected situations.
Aflac offers hospital insurance policies that employers can offer to their employees. This can be an excellent benefit for prospective employees, making it a great way to help you attract top talent to your company.
Don’t wait until it’s too late. Help cover yourself and your family with affordable coverage from Aflac.
Here are some hospital-related costs that hospital indemnity insurance may assist you with:
The exact premiums for hospital indemnity insurance can vary based on factors like your:
However, policies can generally be quite affordable, with premiums starting around $10 per month. Premiums may be much less for hospital indemnity plans that employers offer to employees as part of their benefits package.2
Here are some benefits of purchasing a hospital indemnity insurance policy:
As mentioned, hospital indemnity insurance plans often start around $10 per month. That can make this type of coverage fit into your budget alongside your regular health insurance.
Hospital bills alone can add significant costs to your total medical expenses if an injury or illness requires hospitalization. Primary health insurance usually helps cover some, but not all, costs. If you don’t have health insurance, these costs can be severely financially straining.
Hospital indemnity insurance provides a safety net that can help. If you’re insured, it can help fill critical gaps that may exist in your health coverage and can help significantly reduce your out-of-pocket expenses.
You can typically customize your hospital indemnity coverage to best fit your needs. You get to choose the amount of coverage, and you can shop with several insurers to find the policy with the best rates and terms for you.
Hospital indemnity insurance typically does not have a network of providers you must stay in to get coverage. This offers more flexibility than many traditional health insurance policies. For example, you may need to be transported to a hospital outside your health insurance network. Your hospital insurance policy can help cover at least part of the hospital stay to reduce out-of-pocket costs.
Aflac hospital indemnity insurance can be a worthwhile investment for those who may need to visit the hospital in the future or for those who want to be better prepared for the unexpected. Here are a few situations where one of these policies can be worth it:
In any of these situations, hospital indemnity insurance can help give you a financial safety net, allowing you to worry less about hospital bills.
Health insurance covers many medical costs but may not pay for an entire hospital stay. Luckily, hospital indemnity insurance can help fill those gaps with low rates that fit most budgets. This makes these policies suitable for a variety of people who want less financial stress if they need to visit the hospital.
If you’re an employee, start the conversation about hospital insurance with your employer and provide them with more information about how it can benefit you and the company. If you’re an employer, speak with an Aflac agent to learn how hospital insurance may increase employee satisfaction and help attract top-quality job candidates.
Explore your hospital insurance options.
1 HealthCare.gov – Why Health Insurance is Important. https://www.healthcare.gov/why-coverage-is-important/protection-from-high-medical-costs/. Accessed January 4, 2024.
2 Forbes – What is Hospital Indemnity Insurance? Updated March 10, 2023. https://www.forbes.com/advisor/health-insurance/hospital-indemnity-insurance/. Accessed January 4, 2024.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
Hospital Indemnity Plans: In Delaware, Policies B40100DE & B4010HDE. Idaho, Policies B40100ID & B4010HID. In Oklahoma, Policies B40100OK & B4010HOK. In Virginia, Policies B40100VA & B4010HVA.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
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