Hospital Indemnity??

I'm super confused on hospital indemnity. I watched videos and read and I get that it's supposed to help return you to your financial state prior to the incident.

But what I'm looking at is like a $10/mo payroll deduction for $1000 for one day of admittance plus $100 for every other day? Or something like that. And so I understand, essentially, you get a payout. And I checked on tax impact and it's post tax and the benefit is considered non taxable.

My question is, I'm only paying $120 a year for the potential to be paid out $1000 and there's no other ramifications??? I don't have to consider it taxable income???

Considering insurance seems to be a money hungry system, I'm confused how this can function or if I'm just missing something.

I'm trying to decide if increasing my HSA contribution makes more sense or hospital indemnity is a good contribution.

submitted by /u/bonez_13
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