Question

A hospital indemnity policy pays a daily benefit based on

Answer 1

A hospital indemnity policy pays a daily benefit based on the length of a hospital stay.

Step-by-step explanation:

A hospital indemnity policy is a type of insurance that pays a daily benefit based on the length of a hospital stay. This means that for each day the policyholder is hospitalized, they receive a certain amount of money from the insurance company to cover their expenses.

For example, let's say the daily benefit is $200. If a person is hospitalized for 5 days, they would receive $200 x 5 = $1000 from their hospital indemnity policy.

This type of insurance is typically used to supplement other health insurance coverage and can help individuals pay for out-of-pocket expenses during a hospital stay, such as deductibles or co-payments.