What type of supplemental coverage pays a flat daily amount if an individual is admitted into a hospital?

Hospital indemnity insurance is designed to provide a daily cash benefit to policyholders who are hospitalized. This type of coverage typically pays a predetermined amount for each day an individual stays in the hospital, regardless of the actual medical expenses incurred during the stay. The benefit can be used by the policyholder for any purpose, such as covering deductibles, copayments, or even everyday expenses that persist while they are hospitalized.

This coverage can be especially valuable for individuals who have high out-of-pocket costs related to hospital stays, providing financial relief during times of medical need. Since this type of insurance does not reimburse for specific medical expenses but rather offers a flat daily payout, it effectively supports patients by offering some financial stability when they may not be able to work.