Hospital Indemnity, you pay monthly premiums for your plan, if you are admitted to the hospital for an injury or illness, your hospital indemnity plan makes cash payments to you. And with the payments going directly to you, you can use these emergency funds to pay for costs not covered by your health insurance, health insurance deductibles, copays and coinsurance, childcare expenses while you are in the hospital, or cost-of-living expenses as you recover.For most plans there are no deductibles and you are not limited to provider networks.