Sun Life offers hospital indemnity insurance with new extended hospitalization coverage to help members close coverage gaps

Rhea-AI Summary

On August 3, 2020, Sun Life announced the launch of a new hospital indemnity insurance offering to mitigate high out-of-pocket costs associated with hospitalizations. This policy provides a daily cash benefit for up to 30 days, with additional coverage for extended stays exceeding ten days. The insurance is designed for various health conditions, including costly illnesses like cancer. With hospital stays averaging $11,000, this product aims to enhance financial security for members amidst rising healthcare costs.

Positive

• Launch of hospital indemnity insurance to cover high hospitalization costs.
• Daily cash benefit payable for up to 30 days, providing financial relief.
• Additional coverage for hospital stays over ten days, enhancing security.

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• None.

WELLESLEY, Mass., Aug. 3, 2020 /PRNewswire/ -- For many people, hospitalizations can result in high out-of-pocket costs, sometimes in the thousands of dollars, depending on the length of stay. To help offset the costs to consumers, Sun Life now offers hospital indemnity insurance. The coverage pays a daily cash benefit directly to the member for an in-patient hospitalization up to 30 days, and offers an extended hospitalization benefit that provides additional coverage for stays over ten days, retroactive to the first day. The benefit is paid regardless of medical diagnosis or treatment, and can be used for anything from medical bills to groceries.  

"As medical costs continue to rise, people are looking for more ways to afford the care they need," said David Healy, senior vice president, Group Benefits for Sun Life U.S. "Any major health event can lead to out-of-pocket costs that many people simply cannot afford. Supplemental health benefits like hospital indemnity, as well as critical illness, accident and cancer insurance, can help close the coverage gaps in health insurance and bring people better financial and medical security during a time when they need it most."

For "catastrophic" or extremely costly medical conditions, hospital stays can become lengthy. Of the top costliest medical conditions in Sun Life's recent report on stop-loss claims – high-cost claims from self-funded employer clients – cancer, complications at or after birth and transplants were among the conditions requiring longer hospitalizations, with average stays ranging from 16 to 47 days. In addition, Sun Life stop-loss claims for COVID-19, to date, show hospitalization stays ranging from 3 to 35 days.

According to the Kaiser Family Foundation, the average cost of a hospital stay is $11,000, for approximately five-and-a-half days – an average daily cost of $2,500. Members who hold more than one supplemental health policy, such as critical illness, cancer, and hospital indemnity insurance, would be eligible for payouts under each benefit, for stronger financial protection when facing a major health issue.

Hospital indemnity from Sun Life is also available on the Sun Life + Maxwell Health digital benefits administration platform, which includes a supplemental health educator to help people understand how these benefits intersect with health insurance.

Sun Life's recent webinar on supplemental health and hospital indemnity insurance can be viewed here, and to see how Sun Life is supporting employers and employees during the pandemic, visit www.sunlife.com/coronavirus. 

About Sun Life
Sun Life is a leading international financial services organization providing insurance, wealth and asset management solutions to individual and corporate Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2020, Sun Life had total assets under management of C$1,023 billion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

In the United States, Sun Life is one of the largest group benefits providers, serving more than 60,000 employers in small, medium and large workplaces across the country. Sun Life's broad portfolio of insurance products and services in the U.S. includes disability, absence management, life, dental, vision, voluntary and medical stop-loss. Sun Life and its affiliates in asset management businesses in the U.S. employ approximately 5,500 people. Group insurance policies are issued by Sun Life Assurance Company of Canada (Wellesley Hills, Mass.), except in New York, where policies are issued by Sun Life and Health Insurance Company (U.S.) (Lansing, Mich.). For more information, please visit www.sunlife.com/us.

Media contact:
Devon Fernald
Sun Life U.S.
781-800-3609
Devon.Portney.Fernald@sunlife.com 

Connect with Sun Life U.S.
https://www.facebook.com/SLFUnitedStates/ 
https://www.linkedin.com/company/sun-life-financial/ 
https://twitter.com/SunLifeUS

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SOURCE Sun Life U.S.

FAQ

What is the hospital indemnity insurance offered by Sun Life (SLF)?

Sun Life's hospital indemnity insurance provides a daily cash benefit for hospitalizations, helping offset high out-of-pocket costs.

What are the benefits of Sun Life's hospital indemnity insurance for members (SLF)?

The insurance offers daily cash payouts for hospital stays up to 30 days, with added coverage for longer stays.

How does Sun Life (SLF) aim to support members with rising medical costs?

By introducing supplemental health benefits like hospital indemnity insurance, Sun Life aims to help members manage increasing healthcare expenses.

What is the average cost of a hospital stay according to Sun Life's press release (SLF)?

The average cost of a hospital stay is approximately $11,000 for about five-and-a-half days.

Can members receive payouts from multiple supplemental policies with Sun Life (SLF)?

Yes, members holding multiple supplemental policies can receive payouts from each for better financial protection.