Group Hospital Indemnity Insurance | Alfac

Group Hospital Indemnity Insurance | Alfac

Group Hospital Indemnity Insurance

Helps you pay for out-of-pocket expenses that result from a covered hospital stay.

Here's what you need to know

Group Hospital Indemnity Insurance provides you with a cash benefit you can use to help pay expenses when you have a covered hospital stay.


If you’ve ever been hospitalized, then you already know that your medical plan may not pay all of your medical expenses. Whatever remains is what you’ll be expected to pay on your own. Deductibles, copays, out-of-network charges, and other uncovered expenses can add up to big bills, even for a short hospital stay. 


That’s where Group Hospital Indemnity Insurance comes in handy. You can use the cash benefit you receive from this plan to help you cover not just bills related to your medical care, but any other expenses as well. 


  • Pays a lump-sum benefit payment to use however you see fit
  • The payment is made directly to you (unless otherwise assigned)
  • It can help pay out-of-pocket expenses related to medical care associated with covered accidents or sicknesses
  • In addition to medical care, you may use it to pay for things like childcare, lodging, or over-the-counter medication


You can collect this benefit in addition to whatever coverage you have, including your employer’s medical plan, any other type of medical coverage, disability coverage, or other benefits you may be eligible to collect. However, it is NOT a substitute for these coverages and does not meet minimum essential coverage as defined by federal law. 

A hospital stay can be costly to your finances in 2 ways:


  • Medical bills. After being admitted, you have expenses for each day you’re in the hospital – and even a short stay can end up being costly. In addition to the stay itself, treatments, tests, and surgery can add to the cost.
  • Lost wages. Each day in the hospital could mean taking time out of work, or a family member may take time away from their job to help support you. If this impacts the paycheck that your family relies on, you may need to dig into savings or even borrow money. Group Hospital Indemnity Insurance helps alleviate these worries.  


Since you have the freedom and flexibility to choose how you spend your payout, you can use it to help pay for medical expenses or non-medical expenses. Even use it to help pay regular living expenses such as grocery bills, mortgage payments, childcare, and transportation – all of which could become a concern if you lose income while you’re in the hospital.


Instead of turning to your savings or taking on credit card debt to pay those medical bills, you can use the cash you receive from this plan to help pay them. That means less time spent worrying about money and more time spent focused on getting well again.

These are the periods when you are eligible to enroll for Group Hospital Indemnity Insurance:


  • Within your 31-day new hire enrollment period
  • Within 31 days of a qualifying life event (you get married, have a baby, etc.)
  • During your employer’s annual enrollment


Keep in mind: If you enroll during these timeframes, you have what is called "guaranteed issue," which means you may qualify for coverage without answering health questions. You must have coverage in place before a covered accident or sickness happens in order to be eligible to collect the benefit when you need it. 

These form(s) are in Adobe Acrobat Reader (PDF) format and are available for downloading and printing.


Group Hospital Indemnity Guide

Rate Chart

Claim Form

Customer Service Website

How It Works

Number one Enroll now icon

You enroll in coverage

Number two Hospital icon

After coverage is in effect, you have a hospital stay due to covered accident or sickness  

Number three Giving money icon

Receive a lump-sum benefit

Number four moneybag icon

Use your money however you want

You’re admitted to a hospital for a covered accident or sickness.

That’s when Group Hospital Indemnity Insurance comes in.

Because you have hospital indemnity coverage, you get a cash payment you can use for any expenses you want – medical or not.

Frequently Asked Questions

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  • Who is Aflac?


    Aflac helps provide financial protection and peace of mind to millions of policyholders in the U.S. and Japan – allowing customers to focus more on recovery, not financial stress. When an insured gets sick or hurt, Aflac pays cash benefits fairly and promptly directly to the insured (unless otherwise assigned).

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  • When is a benefit paid under the plan?

    Once your coverage is effective, you’ll receive benefits for a covered hospitalization. These benefits vary by state and may have other limitations and exclusions that may affect what’s payable. Refer to the plan documents for complete details.
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  • Who in my family is eligible for this program?

    Members of your family who are considered eligible to enroll for coverage include:

    • You – if you are an active employee working 16+ hours per week
    • Your spouse – age 18 and older
    • Your child(ren) – under age 26

    You must be enrolled in coverage for members of your family to also enroll. 

  • How much does coverage cost?

    This is group insurance offered at group rates. Refer to the Rate Chart in the Forms & resources tab.
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  • Do I have to answer health questions or take a medical exam?

    No, you don’t! If you enroll during your eligible enrollment periods, you have "guaranteed issue," which means you may qualify for coverage without answering health questions.
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  • What if my employment status changes?

    Good news! If you leave or retire from your current employer, you can continue your coverage without interruption (subject to applicable law and the plan’s terms and conditions). Although payroll deduction will no longer be available, you can opt for other payment methods such as direct bank account deduction, credit card billing or home billing. Higher rates may apply. 

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  • When would my coverage start?

    For annual enrollment, coverage is effective on the date shown on the Certificate after the application is received and approved. You must be actively at work on the coverage effective date.


    For new hires and qualifying life events, coverage is effective the first of the month following the enrollment form approval date, provided the eligibility requirements are met.

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  • Am I really free to use the payment any way I choose?

    Yes, you are! There are no restrictions or requirements about how you can use your hospital cash benefit. You don’t even need to use it on expenses you incur while you’re IN the hospital – you can also use it for expenses after you’re discharged. You’re free to use this money on anything you choose, including out-of-pocket medical expenses and/or non-medical expenses such as regular monthly bills if you’re out of work. 
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  • How do I cancel my policy?

    Call Aflac Customer Center at 800-433-3036 for cancellation procedures.

Are you ready To Enroll?

You are eligible to enroll during any qualifying event (new hires, life events) or during the open enrollment period.

Do You Need Help?

Our team is ready

M-F 8a-5p CT

Phone Number: 1-800-698-2849
  • Legal Disclaimers

    Continental American Insurance Company (CAIC), a proud member of the Aflac family of insurers, is a wholly-owned subsidiary of Aflac Incorporated and underwrites group coverage. CAIC is not licensed to solicit business in New York, Guam, Puerto Rico, or the Virgin Islands. This is a brief product overview only. Products and benefits vary by state and may not be available in some states. Plan design and optional benefits are selected at the employer level. The plan has limitations and exclusions that may affect benefits payable. Refer to the plan for complete details, limitations, and exclusions.


    For groups sitused in California, group coverage is underwritten by Continental American Life Insurance Company. For groups sitused in New York, coverage is underwritten by American Family Life Assurance Company of New York.


    Columbia, South Carolina


    AGC2400684                 EXP 6/25

  • Mercer's Role & Compensation