The Insurance Buying Guide: Hospital Confinement Rider

Ordinarily, you have to wait until the elimination period has been satisfied to begin collecting any disability benefits. However, the hospital confinement rider will begin paying the regular total disability benefit during the elimination period, if you are hospitalized. However, the benefits will be paid only as long as you are in the hospital.

Example: Sean has a disability income policy with a 30-day elimination period and a $1,000 monthly benefit for total disability, payable to age 65. He also has the hospital confinement option. He is hospitalized for minor surgery for a period of two days. Following the hospitalization, he returns to work within three days. Sean can claim total disability benefits for the period of two days. The amount paid will be 2/30 of $1,000 -- or $67.