How does hospital indemnity insurance work?
Reviewed by
Needing to spend time in the hospital can disrupt your life and finances. And when you’re sick or injured enough to need hospital care for one night or more, the last thing you should have to worry about is how you’re going to pay for it. Hospital indemnity insurance can help.
Hospital indemnity insurance is a type of supplemental health insurance plan that can help you pay for costs associated with a hospital stay. When you purchase hospital indemnity insurance through work, you’ll be able to use it if you are admitted to a hospital or intensive care unit for a covered sickness or injury.
Make hospital indemnity insurance part of your financial strategy
Nearly half of workers believe their health care plan isn’t enough to cover a major medical event.1 That’s one compelling reason why getting hospital indemnity insurance through your workplace is helpful: it pays you directly even if you don’t incur any out-of-pocket expenses from your hospital stay.
How Guardian’s hospital indemnity insurance works: Meet Carol
Let’s take a look at an example of Guardian’s hospital indemnity insurance in action.
Carol goes to the ER for severe abdominal pain and nausea. A CT scan reveals she has gallstones. She is admitted to the hospital, and undergoes emergency surgery to remove her gallbladder. She stays for one night and is released the next day.
Carol has medical insurance, but still faces $3,815 in out-of-pocket expenses.
If Carol also had hospital indemnity insurance benefits through Guardian, her out-of-pocket amount would be $565.* Let’s break that down:
Out-of-Pocket Cost Summary with hospital indemnity coverage | Amount |
Carol's initial out-of-pocket costs | $3,815 |
Guardian’s hospital indemnity insurance total benefit paid to Carol | $3,250 |
Diagnostic exam (CT) | $250 |
Hospital admission | $1,000 |
Inpatient surgery benefit | $2,000 |
Carol's net out-of-pocket after benefits | $565 |
*For illustrative purposes only. Covered benefits and benefit amounts may vary by employer-sponsored plan. See your plan for specific coverage amounts and details.
How to enroll in Guardian hospital indemnity insurance
If your company offers hospital indemnity insurance through Guardian, you can elect the coverage during your annual open enrollment period, or if you are a new employee electing your benefits. Guardian hospital indemnity insurance is “guaranteed issue,” which means you can get the coverage without having to take an exam or answer medical questions.