Insurance coverage for hospital indemnity is also called hospitalization insurance or hospital insurance and is paid out in the event of a “planned” or “unplanned” hospital stay. The purpose of hospitalization insurance is to cover hospitalizations, medical treatments for outpatients, surgery, or any other hospital-related activity involving the insured’s health.
When the insured shows their medical receipts to the insurer, hospitalization insurance gives a lump sum instead of reimbursing payments for medical or hospital expenses. This allows the insured to use the money however they please.
As a government worker in the United States, you don’t have to purchase this type of insurance from private companies since your insurance covers hospitalizations.