Hospital indemnity insurance is a type of supplemental health insurance policy that can help fill the gaps in coverage left by traditional health plans. When a policyholder goes to the hospital because of an illness or injury covered by the policy, the policy pays out a lump sum. The benefit amount varies based on the terms of the policy, and it can be used however the policyholder chooses.

Hospital indemnity insurance is often bought as an add-on to other types of insurance, like Medicare or a health plan offered by an employer. These other policies may not cover all the hospital stay costs, such as co-pays, deductibles, and non-medical expenses like transportation and lodging for family members. Hospital indemnity insurance can provide an extra layer of protection against these expenses.

Overall, hospital indemnity insurance can be an important part of a comprehensive healthcare strategy for individuals and families in the U.S. By helping to cover some of the costs associated with a hospital stay; these policies can provide peace of mind and financial security during difficult times.