Complement your health benefits offering with hospital indemnity insurance

The smart companion for today's high deductible health plans

Health care costs are climbing, and like you, your employees are looking for help. With an increasingly competitive job market, it’s important to offer a strong benefits package that can assist with these rising expenses.

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Financial protection for unexpected hospital expenses

Hospital indemnity coverage allows your employees to focus on healing, not finances

Balancing benefit costs and coverage is difficult for you and your employees. Whether you’re looking for a way to round out your overall benefits package, move to a more affordable health plan, offer HSA-compliant coverage or simply provide more robust benefit options to your staff, hospital indemnity insurance can help.

By offering employees this additional benefit, you can deliver a solution to help employees offset the gaps left by expenses that aren’t covered by most major medical plans, such as costs related to:

  • Outpatient surgery
  • Inpatient services
  • Diagnostic tests
  • Doctor appointments
  • Emergency room trips

This type of coverage not only reduces financial strain for workers, but also helps alleviate the business pains that come with managing ongoing changes in employee health benefits.

Privately insured Americans of working age spent over $1,000 out of pocket per hospital stay in 2013.1

Our hospital indemnity insurance is designed with both employees and employers in mind

Employers and HR professionals

  • Provide a sound benefits package that can help attract and retain high-performing employees, without incurring additional company expenses
  • Manage the increasing costs of coverage through voluntary benefits and potential savings
  • Simplify the enrollment process for all your benefits, including traditional medical plans, by partnering with our nationwide team of licensed benefit counselors
  • Reduce administrative burden by leveraging Colonial Life’s enrollment solutions and 24/7 support

Your employees and their families

  • Can gain peace of mind knowing that they can focus on recovery rather than paying hospital bills
  • Receive direct benefits (unless they specify otherwise) that can be used however they’d like, regardless of any other insurance they may have
  • Can select coverage options for themselves and/or eligible dependents
  • Some policies are portable, allowing employees to keep their coverage even if they change jobs

Commonly asked questions about hospital indemnity insurance

What hospital indemnity insurance plans are available?

Colonial Life offers several individual and group hospital indemnity insurance plans, with several optional riders also available. Product availability differs by state. To learn more about the features and benefits of each one, contact your Colonial Life sales representative.

How do I choose between offering my employees individual or group plans?

Individual and group plans have pros and cons. Your Colonial Life sales representative can help you determine the best fit for your business and your employees.

Pros for individual plans include:

  • Employee-owned and portable, so employees can keep their policies if they change jobs
  • Guaranteed renewable in most states; rates stay stable
  • No particiation requirements or account-level rate increases

Individual plans may have stricter underwriting requirements and have more limited rate flexibility, which leads to potentially higher rates.

Pros for group plans include:

  • Employer-owned, so benefits apply to all eligible employees across state lines (based on situs state)
  • Flexible underwriting with guaranteed-issue options
  • More rate flexibility

Group plans may experience group-level rate increases and are ported or converted at higher rates. Minimum participation requirements are also common.

I have an employee with a Colonial Life hospital indemnity insurance policy. Where can they find a copy of their policy?

To view a copy of their policy, update contact information or manage their Colonial Life insurance, employees should log in to their account. If they don’t have an account, they can register here.

How does an insured employee file a hospital indemnity claim or see the status of an existing claim?

To start the claims process, employees should log in to their account. The fastest way to receive benefits is to file a claim online and set up direct deposit . Paper claims are also available. For more information on filing a hospital indemnity claim, see our hospital/outpatient claim page.


1. Emily R. Adrion, “Out-of-Pocket Spending for Hospitalizations Among Nonelderly Adults,” JAMA Internal Medicine (June 27, 2016) [abstract]

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