Hospital Cash Plan

Answers to common questions about hospital indemnity insurance

These frequently asked questions apply to the Hospital Cash Plan only.

What is hospital indemnity insurance?

Hospital indemnity insurance is a type of plan that pays a set amount – per day, per week, per month, or per visit – if you’re confined in a hospital. The Hospital Cash Plan is a hospital indemnity insurance plan.

How is the Hospital Cash Plan different from a traditional medical plan?

Medical insurance reimburses the insured, or provider, for covered and approved medical services, procedures, equipment, and prescription drugs. The Hospital Cash Plan pays a lump-sum payment directly to the insured for a covered hospital confinement, outpatient surgery, and emergency injury or sickness.

Is this plan compatible with a High Deductible Health Plan (HDHP) and Health Savings Account (HSA)?

If you have an HDHP now (with or without an HSA), or if you plan to have these benefits in the future, we encourage you to consult your tax advisor. Your tax advisor can explain the tax implications of the Hospital Cash Plan and help you make informed decisions about your healthcare coverage.

Do I have to be employed to enroll in the Hospital Cash Plan?

No. Enrollment isn’t dependent on current or future employment. As long as you pay your premiums on time, coverage is guaranteed renewable to age 70.

I’m thinking about getting hospital indemnity insurance for all of my family members. When are kids no longer eligible for the policy?

At age 19 – or 26 if they’re full-time students. This may vary by state.

Is there a waiting period before the Hospital Cash Plan pays benefits?

Yes. Generally a waiting period applies for the following situations. Benefits may vary by state and may not be approved in all states

  • Cancer, hernia(s), adenoids and appendix or tonsils – (6) months unless treated on an emergency basis
  • Pregnancy and childbirth - (10) months

No benefits are provided or paid under this policy for care or treatment of any covered person donating an organ occurring during the first (12) months from the date of policy.

How is the hospital indemnity insurance benefit paid?

When you experience a hospital confinement, outpatient surgery, or emergency accident or sickness, you submit a claim form along with the receipts for services received. You or your designee will receive a lump-sum payment as described in the policy. You or your designee can use the cash for whatever you choose.

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Hospital Cash Plan is Kanawha Insurance Company policy Form 90840 and optional rider policy Form 90841. Covers certain pre-existing conditions after a 12-month waiting period. Waiting periods apply to certain conditions; see policy form for details. The benefits and riders offered are supplemental and not intended to cover all medical expenses. Please see actual policy for complete details.

Bev's Story

story image "If I get sick, I want to count on my family for emotional support – not financial support."

"I've saved all my life so I could have a comfortable retirement. But then I started thinking about my health. I have health insurance, but I know it doesn't cover everything. What would happen if I have an accident or need surgery? Could I afford to pay for a long hospital stay?

"That's why I bought the Hospital Cash Plan. If something should happen, I'll have the cash I need on hand. I won’t have to dip into my savings – and I won't have to rely on my family."

Bev's story is a fictional example meant to illustrate the value of the Hospital Cash Plan. Actual premiums vary depending on the coverage amount selected.