Guides / Fixed indemnity
Fixed indemnity plans pay a set cash benefit.
You know the dollar amount for a covered service before you use it. People choose this for predictable cash benefits, a lower premium, and flexibility in how the benefit is used. A fixed indemnity plan is not major medical, and it is not health insurance.
How does a fixed indemnity plan pay?
The brochure sets the cash benefit. A doctor visit has one amount. A day in the hospital has one. You can see those figures before you use the plan.
Predictable, lower cost, flexible
- Predictable cash benefits. The plan pays the set amount for a covered service. That amount is what you plan around.
- A lower premium. The monthly cost is built to stay approachable. On a typical plan you do not meet a deductible before the benefit pays. Confirm that in the brochure you are shown.
- Flexibility. The benefit is tied to the service. You can use it with the doctors you already see, and you can pair it with other coverage.
- In network, the bill is often reduced to a network rate. The plan then pays its set amount toward that visit.
A strong everyday option
- You want a cash benefit you can count on for office visits and hospital days.
- You want the premium to stay the number you budget.
- You like choosing how the benefit is used on the bill for that service.
- The set amount is the plan payment, not a copay. The brochure is the schedule.
What does a cash benefit look like?
A cash benefit is a set dollar amount for a covered service. The figures below are invented. They are not a quote.
Say a visit has a network rate of $110, and the plan pays $80 for that visit. The cash benefit is $80, and you can see that amount in the brochure before you go.
Say a hospital day benefit is $1,000 and the stay is three days. The plan pays $3,000 for those days. These figures are invented for the example.
A fit for many households
This is the option Seth walks through first with many people who want predictable cash benefits and a lower premium, with flexibility in how the benefit is used.
When another option fits
A private major medical PPO shares the cost of covered care through a network, with pricing based on your health. The Marketplace is there when you want a plan that does not ask health questions. Private major medical PPO plans.
If you do not qualify, there may be other options. Ask Seth. Need an ACA plan or Medicare? We can help with that too.
Plan name and brochure
Questions about your own coverage go to Seth. This page cannot answer them.