What type of insurance policy pays for medical expenses while the insured is hospitalized?

A Hospital Expense policy is specifically designed to cover medical expenses incurred during hospitalization. This type of policy typically includes coverage for costs such as room and board, nursing care, and other related hospital services, ensuring that policyholders can receive necessary care without facing overwhelming financial burdens.

The key aspect of a Hospital Expense policy is its focus on expenses directly related to hospital stays, which differentiates it from other types of insurance. Life insurance provides a payout to beneficiaries upon the insured's death, disability insurance offers income replacement in the event of a long-term disabling condition, and accidental death policies pay out only if the insured dies as a result of an accident. Thus, only the Hospital Expense policy directly addresses the medical expenses associated with hospitalization.