Indemnity Plan

Published: | Updated: November 5, 2017

Definition - What does Indemnity Plan mean?

An indemnity insurance plans allow individuals to direct their own healthcare and visit almost any doctor or hospital they choose. A set portion of the total charges are then covered by the insurance company.

Indemnity plans are also known as "fee-for-service" plans.

Insuranceopedia explains Indemnity Plan

There are two types of indemnity insurance plans: professional indemnity and indemnity health. Most indemnity insurance plans are voluntary, but some businesses are required by law to provide such a policy for their employees.

Indemnity health insurance reimburses the insured after they submit a claim for covered medical care. These plans pay out a specific amount per day for a maximum number of days. Some plans may also have a coinsurance amount that is covered by the insurer.


How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this: