Hospital indemnity insurance is designed to supplement your existing health insurance plan by helping pay expenses if you are ever admitted to the hospital. Typically, most hospital indemnity plans will give you cash payments to help you pay for additional out-of-pocket expenses while you’re recovering.

Depending on the coverage you select cash payments are typically given to reimburse or reduce the cost of hospital stays, inpatient and outpatient surgery, emergency room visits, diagnostic tests, doctor office visits. Regardless of the reason for the cash payout you can use any cash benefit received however you see fit for example to replace income if you were out of work.