Hospital indemnity insurance is a supplemental insurance that provides financial assistance by paying a fixed amount for covered hospital stays. This insurance is purchased separately but it works in combination with regular health insurance. Health insurance is designed to cover majority of medical costs, hospital indemnity insurance pays a daily predetermined benefit directly to you (e.g., $100/day) if you’re hospitalized. Again, this benefit is paid directly to you, regardless of other insurance coverage. It helps offset expenses not covered by primary health insurance, such as deductibles, copayments, or non-medical costs like travel, hotel accommodations for family members during hospitalization, groceries etc. This insurance is particularly beneficial for individuals concerned about potential gaps in coverage or seeking additional financial security during a hospitalization. It can typically be purchased through your employee benefits and paid via payroll deduction, usually it’s fairly inexpensive.