Skip to main content
Securian Financial

Group hospital indemnity insurance

Keeping finances in good health

Group hospital indemnity insurance empowers employees to plan ahead financially with flexible, affordable options for offsetting out-of-pocket expenses resulting from an unexpected hospital visit. And it adds value to overall benefits packages while being prudent about the bottom line.

Watch our video explaining Hospital Indemnity insurance to participants

Why offer group hospital indemnity insurance?

Hospital indemnity insurance provides a predetermined benefit amount while the insured is in the hospital.

  • 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)

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 accident
  • 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 have the most comprehensive list of covered therapies in the marketplace including 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.

One

Accident

John slips off a stair and breaks his lower leg
Two

Hospitalization

Although John doesn't require surgery, he spends two days in the hospital
Three

Claim

John could receive a cash payout to help cover medical costs or other expenses

Benefit Medical Expense Low Plan High Plan
Hospital Stay, Initial Benefit (non-ICU) $2,000 $250 $500
Hospital Stay, Daily Benefit (non-ICU) (2 days) $200 $400
Totals $2,000 $450 $900

Actual experience and benefit payouts may vary.

Take the next step

Put group hospital indemnity insurance to work for you.     

Contact sales today
Ambulance

Hospital costs

Average length of stay in the hospital is 4.6 days, with the average cost per stay totaling about $12,1831

1 HCUP Fast Stats. Healthcare Cost and Utilization Project (HCUP). May 2020. Agency for Healthcare Research and Quality, Rockville, MD.

2 Payable up to a specified number of days while the insured receives treatment.

This policy provides limited benefits and has exclusions, limitations, reductions of benefits and terms under which the policy may be continued in force or discontinued. For further details, including product availability, contact your benefits department or Securian Financial Group.

Group hospital indemnity insurance is underwritten by Securian Life Insurance Company, a New York authorized insurer. The company is an affiliate of Securian Financial Group, Inc. and is headquartered in Saint Paul, MN. Product availability and features may vary by state.

DOFU 11-2020
1376998