What Is Fixed Indemnity Insurance?

What Is Fixed Indemnity Insurance?

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Worried about needing fast money in a health care pinch? A supplemental plan like fixed indemnity insurance might be for you. Also known as hospital indemnity plans, these policies pay out cold hard cash for unexpected injuries or illnesses.

Why would I need this? Fixed indemnity insurance is designed to pair with your regular health policy to protect you “just in case” — like if you break your wrist playing adult kickball (trust us, it happens) or come down with a surprise infection. If your plan covers the injury or sickness, you’ll get a fixed payout to help cover costs without blowing your savings. Read: If you’ve got a high deductible with more digits than you can afford outright, you might want the extra protection.

Do I need to wait until open enrollment? Nope. You could sign up today, if you wanted to — or any day after, for that matter. There’s no special window for enrolling in fixed indemnity insurance, but that doesn’t mean you should wait. Got a kickball game coming up? Get yourself covered!

How much does it cost? Probably less than you might think. Fixed indemnity plans are often cheaper than your regular health plan’s premium, and they come without deductibles.

Is there a catch? Not really, except that fixed indemnity plans may only cover a limited set of sicknesses, injuries, medicines or procedures. Check your policy before you pick a plan.


Bana Jobe

Bana Jobe is an award-winning medical writer with over 10 years of experience

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