Hospital Indemnity Insurance: A Surprisingly Great Deal for Expecting Parents

Not medical advice. For emergencies, call your local emergency number.

Navigating the costs associated with pregnancy and childbirth can be a significant concern for new and expecting parents. While health insurance covers the bulk of medical expenses, certain supplemental insurance policies can offer a surprising financial benefit. This article explores the value of hospital indemnity insurance, a type of voluntary supplemental health insurance that pays a lump sum if you are admitted to a hospital.

One parent shared their positive experience with a hospital indemnity plan through Cigna, which cost them about $30 per month or $350 for the year. After their partner became pregnant and they welcomed their first child, the plan provided substantial payouts. The policy covered $1500 for the wife’s admission, $200 per day for their stay, and $500 for the newborn’s nursery admission, totaling $3200 in benefits for a mere $350 premium.

This type of insurance is distinct from standard health insurance and typically offers fixed daily or per-admission benefits. While it doesn’t replace comprehensive health coverage, it can be a valuable addition for those anticipating a hospital stay, such as during childbirth. For expecting parents, especially those planning for or in the midst of a pregnancy, investigating employer-offered hospital indemnity insurance could lead to significant financial relief and peace of mind during this exciting but often expensive life event.

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