Hospital Indemnity plans are intended to pay you a certain amount of money per day if you are hospitalized. Hospital Indemnity plans generally pay between $50 and $100 per day in the event of hospitalization. They usually pay in addition to medical insurance. These plans are generally sold with the idea that "you may need extra income if you are hospitalized." These plans however are no substitute for good disability insurance coverage. Since most comprehensive medical insurance plans pay for hospitalization, you would be better served by dropping the hospital indemnity plans and increasing your disability insurance. You may want to read about the dangers of using this type of insurance when trying to come up with a balanced health insurance plan

Our consultants also suggest that you generally stay away from "Hospital Only" plans. Hospital-only plans are medical insurance plans which pay your medical bills only while you are hospitalized. Because most medical expenses are incurred outside a hospital, these policies offer inadequate coverage and should generally not be purchased. There might be some situations in which doctors could consider the purchase of a hospital only plan for themselves (if they receive adequate professional courtesy), otherwise these plans should be avoided.