What is Fixed Indemnity Health Insurance?

Fixed Indemnity (or fixed benefit) plans are very different compared to traditional major medical coverage.

In many cases, fixed indemnity plans are not right for everyone, and you should always speak with a licensed professional if you are considering this as an option.

So exactly what is Fixed Indemnity Health Insurance?

A fixed indemnity plan pays a specific (or fixed) amount for each medical service that is covered in the policy.

For example, a fixed indemnity plan could pay a $1,000 benefit per day that you are admitted into the hospital. So, if you were admitted for 10 days, that same plan would cover $10,000 in your total hospital stay. Any left-over expenses, that are not covered in the policy, would be your responsibility to pay.

These types of polices usually include benefits for: Dr visits, Hospitalization, emergency room services, and more.

Keep in mind that these plans are not major medical coverage. So, they usually do not cover preexisting conditions, pregnancy, or substance abuse.

However, a Fixed Indemnity plan might be good for a healthy individual, when all other options are too expensive.

If you have any questions about health insurance, always speak with a licensed professional