Why offer group hospital indemnity insurance?

Hospital indemnity insurance provides a predetermined benefit amount while the insured is in the hospital. The average length of stay in the hospital is 4.6 days, with the average cost per stay totaling about $12,183¹

• Cash benefit is paid directly to employees — to use any way they wish, including out-of-pocket, non-covered and cost-of-living expenses
• Payout doesn’t depend on income or participation in other employer insurance offerings
• Amounts of coverage available without a medical exam

What does group hospital indemnity insurance cover?

Standard benefits include:

• Both Initial Benefit and Daily Benefit are payable on the first day of a hospital stay

• Admission not required for benefit payment, only a minimum number of hours (lower than most carriers)
• Proactive labor and delivery hospital claims. Securian Financial will proactively pay hospital indemnity claims for routine labor and delivery once the birthing parent reaches 36 weeks gestation. Both the initial and daily benefit will be paid. Longer stays are eligible for additional benefits.

Non-standard benefits include:

12 additional situations, including these highlighted features:

• Mental health (inpatient) — Daily benefit available for inpatient treatment for mental health issues
• Substance abuse — Daily benefit for inpatient treatment for addiction (drug and/or alcohol)
• Pet boarding — Payable each day² an insured receives treatment in a hospital or rehabilitative facility for an injury resulting from a covered hospital stay
• Adult companion lodging — Provided when the insured’s companion incurs a lodging charge and the hospital stay or rehabilitative (inpatient) benefit is payable the same day
• Rehabilitation therapy — We offer a comprehensive list of covered therapies that include occupational therapy, vocational therapy, speech therapy, respiratory therapy, cognitive behavioral therapy, trauma counseling, chiropractic therapy and acupuncture.
• Our hospital indemnity policy and COVID-19 — If an insured is hospitalized due to COVID-19, benefits may be payable for hospital confinement (non-ICU/ICU), rehabilitation and outpatient riders — provided all other policy provisions, including any applicable pre-existing condition limitation,  are met and subject to the employer’s in force plan design. This includes, but is not limited to, meeting the facility definition to which the insured is admitted/confined.

Standard and non-standard benefits paid depend on the number of benefits for which the insured qualifies, the care they receive and the terms and conditions of the policy.

How group hospital indemnity insurance works

If an employee experiences a hospital stay covered by the policy, they can receive a payout to use any way they wish — to help cover deductibles, out-of-pocket medical costs or everyday living expenses.

The payments are not dependent upon hospital charges and are paid in addition to any other benefits the employee may receive. Out-of-hospital benefits also are available.

Benefit example

Here’s an example of how benefits might be paid.