Health · Chapter 13 · Limited Policies — Circumstances
Hospital Indemnity (Income) Insurance
Definition
Pays a specified flat amount daily, weekly, or monthly directly to the INSURED (not the hospital) from admission until discharge. Payment is unrelated to incurred medical expenses — it's based solely on the number of days confined. Benefit limits, pre-existing condition rules, and elimination periods may apply.
In plain English
A per-day paycheck for being in the hospital — your actual bills don't matter.
Exam tip
⚠️ Two exam hooks: benefits go to the INSURED, and the amount depends only on DAYS confined, never on costs.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms