How Indemnity Insurance Options Are Structured
An indemnity insurance plan is based on a contractual agreement that is set between two parties, i.e., the (insurance carrier and the insured-policy holder). As a result, indemnity insurance policies are designed to provide the insured (policyholder) with a percentage/reimbursement of their hospital and or a medical expense. Once a claim is submitted by the insured for a qualified out of a pocket hospital or medical expense, the insurance company indemnifies/reimburses the insured (policyholder) a percentage of their initial out of the pocket expenses..
Examples Of An Indemnified Expense:
Some examples of an out of pocket medical or hospital expense an insured can be reimbursed or indemnified for are but not limited to:
A Heart Attack-or Stroke
The treatment of Type 1 Diabetes
Sudden Cardiac Arrest—Paralysis due to an accident
Major Third— Degree Burns
Prescribed Physical / Rehabilitation Therapy
Required Home Health Care
Initial Diagnoses of Cancer
Skin Cancer Surgery
Extended Care Hospital Facilities
Generally, medical expenses fall into two categories:
Direct Treatment Costs:
for hospital, surgeon, anesthesia, physicians, radiologist, drugs and medicines, nursing, etc.
Once your deductible has been met, your health insurance will normally pay e.g. there 80% share of the cost for usual and customary charges. - You'll pay the difference.
Indirect Out of Pocket Expenses:
for travel, lodging, meals, child care, special diets, home care, hospice, plus monthly household expenses lime mortgage/rent, utilities food, care pay[ments, etc. ....at times of diminished earning power.
This category of expenses are paid with your own financial resources or with direct cash benefits from a properly structured indemnity insurance plan.
If a long-term accident or illness kept you from being able to work, how long could you go without your regular paycheck? How would you or your family meet monthly expenses and ongoing bills?