What is a fixed indemnity insurance policy? It’s simply a plan that pays fixed dollar amounts for certain medical services or certain types of situations. There are lots of different types of fixed indemnity policies. Some of the more common fixed indemnity policies include accident plans, hospital plan, and limited medical plans.
Are Fixed Indemnity Insurance Plans Good?
A fixed indemnity plan can be a great addition to your overall health insurance coverage, if you understand how it works. Since there are different types of indemnity plans, it’s important to work with a good health insurance agent who can explain the options and get you setup with the best plan for your needs and wants.
Fixed Indemnity Accident Plans
A fixed indemnity accident plan will pay you fixed dollar amounts based on your injury. Some accidental injury insurance plans will pay out in correlation to your medical bills, to protect you financially against your deductible and max-out-of-pocket on your main health insurance policy. However, an indemnity policy pays you predetermined amounts unrelated to your actual medical bills. This can be good or bad, depending on your situation and depending on what other health insurance coverages you have.
Fixed Indemnity Hospital Plans
A fixed indemnity hospital plan is designed to pay you if you are hospitalized. Because you often would have a decreased income if you were hospitalized, but your household bills aren’t going anywhere, this type of plan can be a good thing to have. The hospital plans will often have a larger lump sum payout when you are admitted to the hospital, or a smaller amount you get paid per day you are in the hospital, or both.
Fixed Indemnity Limited Medical Plan
A limited medical health insurance policy is a type of fixed indemnity plan that can sometimes be used as a stand alone medical plan. Even though these plans can be used as your main medical policy, it’s not always recommended because of their limitations. These limited medical plans pay out fixed dollar amounts for all sorts of medical services which can include doctor visits, x-rays, lab tests, surgeries, emergency room, hospitalization, and more. The best use of these limited medical plans is to have it in addition to another health insurance policy. When paired with another plan, you can really minimize or even eliminate your out of pocket costs when you use your insurance..