Limited Benefit Plans
Limited benefit plans provide reduced benefits intended to supplement comprehensive health insurance, not to be an alternative to them. These types of plans limit the amount of coverage the company will pay per episode of injury or illness.
Accident only plans provide a cash payment in the event of injury or death resulting from a covered accident. For example, the policy may pay a $200 benefit for each covered accident.
Hospital indemnity plans pay a cash benefit in the event of hospitalization and/or surgery resulting from a covered illness or injury. For example, the policy may pay a $100 per-day benefit while the insured is hospitalized.