Hospital indemnity insurance covers you if you are hospitalized. Some hospital indemnity policies may allow for family members to be added on, but always check the terms to ensure your policy allows this.
What does it cover?
Be aware that every policy is different. Some policies may offer fixed benefits when admitted into a hospital, overnight stays, or overnight stays in ICU. Other policies may offer benefits for emergency room treatment or certain outpatient procedures.
However, hospital indemnity insurance will not pay for medical bills or prescriptions. You can use the benefit payments to pay for these costs, but keep in mind that the benefits with these policies are designed to cover the gaps not paid for by your medical insurance.