Employee benefits and retirement plan solutions Protect my employees Group hospital indemnity insurance

Group hospital indemnity insurance

Help employees financially prepare for the unexpected with hospital indemnity insurance.

When it comes to the health of employees and their families, the stress of out-of-pocket expenses related to unexpected hospital stays should not be something they need to worry about. Hospital indemnity insurance helps reduce some stress caused by hospital bills, allowing them to better focus on recovery. 

What is hospital indemnity insurance?

Depending on the coverage, hospital indemnity insurance can help alleviate financial worries from a hospitalization due to a sickness or injury. A lump-sum cash benefit is paid to the insured person to help pay for added expenses that may come while recovering.

Why offer group hospital indemnity insurance?

The average overnight hospital stay runs $13,262 regardless of insurance type, so it’s not surprising that 60-65% of all bankruptcies are related to medical expenses.1 Health insurance may help to cover hospital bills in case of hospitalization due to a sickness or injury. But it may not cover all of the costs associated with a hospital stay, such as deductibles and co-pays, transportation, or lodging. Hospital indemnity insurance may help employees by protecting their financial wellness in this time of need. 

How does group hospital indemnity insurance work?

It’s easy for your employees to sign up for hospital indemnity coverage. If they’re admitted to the hospital for a sickness or injury, they receive a lump-sum cash benefit to use any way they choose—regardless of other insurance they have. 

What is covered?

Flexible design options allow you to tailor the hospital indemnity insurance benefits to your employees’ needs. Some examples of covered benefits include daily hospital confinement, inpatient surgery, and therapy. Customization allows you to give your employees a choice to decide what plan design meets their needs.

Who pays the insurance premium?

There are options available to design the coverage, including voluntary, employer-paid, and contributory. Employees choose who to cover and if they’re paying the premium, it will be paid through payroll deduction. 

Key features of Principal® group hospital indemnity insurance.

  • Flexible design, minimal paperwork, and simplified claims
  • Proof of good health is not required.
  • Employees can buy protection for their spouse and/or kids.
  • It is portable coverage employees can take with them.

Build upon your benefits package.

Talk to your financial professional about offering group hospital indemnity insurance. And, consider combining group hospital indemnity insurance with other offerings for a more comprehensive benefits package.