As an add-on to major medical coverage, fixed indemnity insurance offers additional protection in the event of a specific injury or illness covered by the policy. This type of insurance will help to cover the out-of-pocket expenses during the year.
This type of coverage isn’t guaranteed, and you may need to go through a full medical underwriting process before receiving coverage.
Fixed indemnity insurance isn’t the same as major medical coverage. The covered offered may only cover specific injuries, illnesses, medical procedures, and/or drugs. In some cases, a fixed indemnity plan won’t cover hospital costs at all.
It’s important to understand your policy before deciding to add fixed indemnity coverage to your health insurance portfolio.