Life can be unpredictable, and a visit to the hospital is not always as far off as we might hope. In fact, there are more than 80 million injury-related visits to doctors' offices, hospital outpatient departments and emergency-treatment facilities in the U.S. each year, according to the Social Security Administration. Not to mention that treatment for these injuries, whether it is minor diagnostic bloodwork or major surgery, can lead to overwhelming medical costs. After a hospital visit, employees are often left having to make a choice between paying medical bills and other every day expenses, such as cell phone bills and car payments, so it's important that employees are prepared for life's uncertainties with products like hospital indemnity insurance.
What is hospital indemnity insurance?
Employees are likely familiar with health insurance, which pays for specific medical services after deductible or copayment amounts are satisfied. By contrast, they may not understand that hospital indemnity insurance triggers payments when specific events associated with hospital visits occur. An important distinction to help employees grasp is that with hospital indemnity insurance, cash benefits are paid to the insured (unless otherwise assigned) rather than to the doctor or hospital.
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Why hospital indemnity?
Advisers can help clients and their employees understand that not all hospital visits are related to an accident or critical illness. For example, a child's flu diagnosis or a spouse's bout of appendicitis can also lead to a hospital visit that may not be covered by other supplemental products. When specific events associated with hospital visits occur, employees with hospital indemnity insurance typically receive a set amount of money — per day or per visit — that can be used to help cover everyday expenses, such as parking, gas, groceries, dog sitters and other necessities, as well as medical bills. By offering hospital indemnity insurance, clients can help employees protect the freedom of their lifestyle if an unforeseen visit to the hospital occurs.
Customization is key
Just like all hospital visits are not the same, neither are the needs of employees. When looking for the right plan, workers may find customizable benefits the most valuable. This may include options for coverage of medical expenses such as diagnostic exams and acute care. To satisfy the unique needs of each employee, advisers can show clients how the right combination of hospital benefits will enhance their workers' existing coverage by providing exactly the benefits they want and leaving out what they don't want.
The finishing touch
When explaining the benefits of hospital indemnity, work with clients to show them how seamlessly it bundles with other voluntary products, like accident, short-term disability or critical illness to create a robust benefits package. You play an integral role in helping them build out a well-rounded benefits plan that not only provides their workforce with needed financial protection, but can also help attract and retain top talent without adding significant costs to business' bottom lines.
This article is for informational purposes only and is not intended to be a solicitation.
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