Hospital Indemnity Insurance

Hospital stays are no fun. Neither are the bills.

A hospital stay is a lot more common than people may realize. And when it happens, it can be costly. Hospital indemnity insurance is one way to help protect your family's savings.

What is hospital indemnity insurance?

Hospital indemnity insurance provides a predetermined lump sum cash payment while you are hospitalized as a result of a serious accident or illness as defined by your policy.

Usually, the payout is not dependent upon the amount of your hospital charges or other insurance coverage and benefits you may have.

Most hospital indemnity insurance allows you to use the money however you wish. Many don’t require you to answer questions about your health when enrolling, and some allow you to enroll in coverage for your dependents, too.

How hospital indemnity insurance works



Herman falls unconscious and is whisked away to the hospital.


Herman is diagnosed with a critical illness and stays hospitalized for six weeks. Luckily, his medical insurance pays a large portion of the hospitalization and treatment costs.


Herman is discharged to a short-term rehab facility. Although his ambulance ride to the hospital is covered, the ride to the rehab center is not. Plus, his medical insurance covers only 50 percent of his rehab stay.


Because Herman has hospitalization indemnity insurance, he receives a lump sum and uses it to help pay for medical and therapy expenses that are not covered.

What hospital indemnity insurance covers

You may be eligible to receive a hospital indemnity insurance benefit if you are hospitalized as a result of critical injury or illness as defined by the policy. Hospitalization as a result of deliberate self-inflicted injury is rarely covered.

Coverage varies and limitations can apply, so be sure to check any policy for details and exclusions before you enroll.

Why it makes sense

When you consider that the average length of a hospital stay in the U.S. is 4.5 days1 at a total cost of $10,400,2 it’s no wonder that 42.9 million Americans have unpaid medical debt.3

Protecting yourself and your family with additional, affordable coverage is one way you can try to avoid incurring significant medical debt due to a hospital visit or stay.

1. U.S. Centers for Disease Control, Fast Facts, 2014.
2. ProducersWeb, October 2015.
3. “42.9 Million Americans Have Medical Debts,” The Epoch Times, 2014.

This is a limited benefit product. Hospital indemnity insurance has exclusions, limitations, reduction of benefits and terms under which the policy may be continued in force or discontinued. For costs and complete details of the coverage, contact Securian Financial Group. Product availability and features may vary by state.

DOFU 11-2017