Hospitalization insurance provides a payout to you based on circumstances related to hospitalization or other specific healthcare services. Typical health insurance has specifications on covered services, whereas hospital indemnity insurance can be distributed in whatever way you need.

This type of plan doesn't have deductibles, coinsurance, or network restrictions.

Circumstances that would generally lead to payout would be:

• Hospitalizations
• Intensive care
• Critical care

Some hospital indemnity insurance policies may also cover the following:

• Outpatient surgery
• Ambulance services
• Emergency room visits

Hospital indemnity insurance policies may also cover your spouse and family.

Hospitalization insurance doesn't replace your medical insurance. But how do you know if you should purchase this supplemental coverage? Here are a few reasons to consider hospital indemnity insurance:

• You have a chronic condition, like heart disease or diabetes, leading to hospitalization.
• You're pregnant or plan on becoming pregnant, and coverage could be provided for any extra days you stay in the hospital after childbirth.
• You have an upcoming procedure or surgery where a visit or stay in the hospital could be required.
• You have a high-deductible health insurance plan, which has higher out-of-pocket costs.
• You want extra coverage in case of accidents.
• You may need out-of-network care and want help paying for the extra costs.
• You want a safety net for worst-case scenarios.