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Who Needs Hospital Indemnity Insurance? The Clients Most at Risk

Aaron Sims explaining hospital indemnity coverage to a Medicare client

Who Needs Hospital Indemnity Insurance? The Clients Most at Risk

Hospital indemnity insurance isn’t just for seniors — it’s for anyone who can’t afford to be blindsided by a $2,000 to $7,000 bill after a hospital visit.

In today’s world of high deductibles, cost-sharing, and non-medical recovery expenses, your clients are more exposed than they realize.

This article outlines the client profiles who benefit most — and how to position the IdealFlex Series to meet their needs.


1. High-Deductible Health Plan (HDHP) Clients

If your client has a $5,000–$7,000 deductible, one hospitalization could wipe them out.

Use Case:

Pairing a low-premium HDHP with a hospital indemnity plan creates “deductible insurance.”
Clients still get affordable monthly premiums but gain peace of mind that if something happens, their OOP costs are covered.

Pitch line: “If something goes wrong, this plan gives you the cash to cover your deductible — instantly.”


2. Medicare Advantage Enrollees

Most MA plans charge $250–$400 per day for days 1–5 in the hospital — that’s up to $2,000 per stay.

Use Case:

Design a hospital indemnity plan to match their MA structure:

  • $300/day × 5 days = $1,500

  • $500 admission benefit

  • Add ambulance/ER riders

It turns a scary $2,000 bill into a zero-balance situation.

Pitch line: “This policy mirrors the costs your MA plan doesn’t cover — so you’re never caught off guard.”


3. Families with Young Children

Kids = ER visits, fevers, stitches, broken bones. Parents = deductibles, lost sleep, and unexpected bills.

Use Case:

A family plan provides cash when a child is hospitalized or visits the ER. If a parent ends up in the hospital, benefits can help pay for:

  • Backup childcare

  • Extra meals or cleaning help

  • Out-of-pocket ER costs

Pitch line: “This protects your whole family — and gives you cash when you need help most.”


4. Self-Employed & Gig Workers

No PTO. No disability coverage. If they don’t work, they don’t earn.

Use Case:

An indemnity plan provides immediate liquidity when illness or injury knocks them offline. Cash can cover:

  • Rent or mortgage

  • Utilities

  • Groceries

  • Client support while they recover

Pitch line: “You’re your own safety net — this gives you a cushion when you need it.”


5. Financial Planners & Risk-Averse Clients

These clients see insurance as asset protection — not just a product.

Use Case:

Position indemnity coverage as part of a full protection plan, alongside:

  • Life insurance

  • Long-term care

  • Final expense

Pitch line: “You’re already thinking ahead — this adds a layer that most people miss.”


6. Medicare Supplement Clients (Yes, Really)

Even Med Supp clients can benefit — not for medical bills, but for non-medical expenses:

  • Travel

  • Home recovery

  • Pet boarding

  • Family lodging

Use Case:

Offer a smaller indemnity plan to cover personal costs if they’re hospitalized.

Pitch line: “This puts cash in your pocket — for the things Medicare won’t even touch.”


7. Short-Term Medical Policyholders

Short-term health plans often don’t have OOP maxes — or have huge gaps.

Use Case:

Add an indemnity plan to:

  • Cap their risk

  • Cover ER visits

  • Provide benefits for observation stays, which STM plans often ignore

Pitch line: “Short-term medical leaves gaps. This fills them.”


8. Anyone Who’d Struggle with a $3,000 Bill Tomorrow

At the end of the day, if a client can’t easily absorb a hospital-related expense, they need indemnity coverage. It’s that simple.

Ask this question:
“If you had a $3,000 medical bill tomorrow, would it hurt?”

If the answer is “yes,” the sale is already half made.


Final Takeaway

Indemnity coverage isn’t niche — it’s mainstream protection. And it fits into more client profiles than most agents realize.

“If someone has a deductible, a budget, or a family — they need this plan.”

Don’t assume. Offer it to everyone.


Ready to Switch?

Learn more about the Ideal Flex Series Hospital Indemnity
Join our Top Agent Shootout and win your spot on the Texas Hog Hunt
Watch the Sales Leadership Webinar with Shawn Buxton for even more strategy

Brokers Fidelity
Phone: 913-374-1550
Email: hello@brokersfidelity.com
Address: 400 S Kansas Ave, Topeka, KS 66603

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