A hospital indemnity (hospital confinement) policy pays:

Explanation

A hospital indemnity policy pays a predetermined flat amount (for example, a set dollar figure per day of confinement) whenever the insured is hospitalized, no matter what the actual bill is, and the insured may use the cash for any purpose. It does not reimburse the exact bill (that is a medical expense plan), is not limited to surgery, and does provide a hospital benefit. Because it is a limited, fixed-benefit product, it supplements rather than replaces comprehensive medical coverage.