Video: Difference Between Indemnity & Comprehensive Insurance

Difference Between Indemnity & Comprehensive Insurance

Indemnity insurance isn't as popular as it once was. Find out about the difference between indemnity and comprehensive insurance with help from a longtime insurance broker in this free video clip.

Video Transcript

My name is Susan Combs, and I'm an insurance broker for Combs and Company. Today, we're going to talk about the differences between indemnity insurance and comprehensive insurance. Indemnity insurance is you know few and far between now. They were kind of the Cadillac plans in terms of health insurance where everything was covered. So basically it was you didn't have to worry about a network of doctors, you can go to whoever you wanted to, go to the hospital whoever you wanted to and the definition of indemnity is to be made whole. So basically, you would pay your premium and then you'd go anywhere you wanted to, you would submit your claim so there is a little bit more, you know, work on your end because you would have to do all the paperwork but then they would make you whole. So if you spend out $500, they send you a check for $500 type of thing. So with comprehensive a lot of times it's referred to more as managed care and so with that type of health insurance, it actually requires a network of doctors that's utilized. So you might have in network then you might have out of network, out of network meaning that you could go to any doctors but you're going to get the most bang for your buck and pay copays and things like that typically if you use an in network doctor. You know if you use an in network provider then you don't have to worry about any paperwork, you pay your copay and then everything is taken care of. If you have out of network coverage, then it's going to seem more like the indemnity where you can go anywhere, you have to submit the claims but it's usually capped at a certain percentage on the reimbursement where the indemnity, you know covered you in full. So you know if you are looking to try to get an indemnity plan, you know, good luck with that one for now but you can talk to a broker that specializes in health insurance and see what's going to be the best plan for you.

Difference Between Indemnity & Comprehensive Insurance

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