Answers to common
questions about hospital
indemnity insurance
These frequently
asked questions apply to
the Hospital Cash Plan
only.
What
is hospital indemnity
insurance?
Hospital indemnity
insurance is a type of
plan that pays a set
amount per day, per
week, per month, or per
visit if youre
confined in a hospital.
The Hospital Cash Plan
is a hospital indemnity
insurance plan.
How
is the Hospital Cash
Plan different from a
traditional medical
plan?
Medical insurance
reimburses the insured,
or provider, for covered
and approved medical
services, procedures,
equipment, and
prescription drugs. The
Hospital Cash Plan pays
a lump-sum payment
directly to the insured
for a covered hospital
confinement, outpatient
surgery, and emergency
injury or sickness.
Is
this plan compatible
with a High Deductible
Health Plan (HDHP) and
Health Savings Account (HSA)?
If you have an HDHP
now (with or without an
HSA), or if you plan to
have these benefits in
the future, we encourage
you to consult your tax
advisor. Your tax
advisor can explain the
tax implications of the
Hospital Cash Plan and
help you make informed
decisions about your
healthcare coverage.
Do I
have to be employed to
enroll in the Hospital
Cash Plan?
No. Enrollment isnt
dependent on current or
future employment. As
long as you pay your
premiums on time,
coverage is guaranteed
renewable to age 70.
Im
thinking about getting
hospital indemnity
insurance for all of my
family members. When are
kids no longer eligible
for the policy?
At age 19 or 26 if
theyre full-time
students. This may vary
by state.
Is
there a waiting period
before the Hospital Cash
Plan pays benefits?
Yes. Generally a
waiting period applies
for the following
situations. Benefits may
vary by state and may
not be approved in all
states
- Cancer, hernia(s),
adenoids and
appendix or tonsils
(6) months unless
treated on an
emergency basis
- Pregnancy and
childbirth - (10)
months
No benefits are
provided or paid under
this policy for care or
treatment of any covered
person donating an organ
occurring during the
first (12) months from
the date of policy.
How
is the hospital
indemnity insurance
benefit paid?
When you experience a
hospital confinement,
outpatient surgery, or
emergency accident or
sickness, you submit a
claim form along with
the receipts for
services received. You
or your designee will
receive a lump-sum
payment as described in
the policy. You or your
designee can use the
cash for whatever you
choose.