Recently you may have heard more about the availability of Hospital and Doctor indemnity insurance,F10 also called fixed indemnity insurance. That may have led you to ask, “What is indemnity insurance?”
A fixed indemnity plan pays a certain predetermined amount for specific, covered health care expenses without your having to pay copays or out-of-pocket deductibles. Under a fixed indemnity health insurance plan, the amount specified in your plan is paid for a particular service.
Often, fixed indemnity plans differ from major medical plans, which require you to meet deductibles, copays and coinsurance payments before the insurance company takes over to pay what’s left of your costs.
In what other ways is an indemnity plan different? A look at some key terms can help.