Which of the following policies pays a fixed hospital benefit directly to the insured, regardless of the actual hospital expenses incurred?

The correct answer, hospital indemnity, refers to a specific type of insurance policy designed to provide a fixed benefit amount to the insured for each day of hospital confinement, regardless of the actual medical expenses incurred. This means that if an individual is hospitalized, the insurance will pay out a predetermined daily amount that is independent of the hospital's billing or the specific treatments received.

This structure offers an advantage for policyholders, as they can use the fixed benefit to cover a variety of costs associated with their hospitalization, such as lost income or additional living expenses, beyond just medical bills. Hospital indemnity plans can provide financial peace of mind by helping to fill the gaps that traditional health insurance may not cover.

In contrast, the other policy options focus on different aspects of health insurance coverage. Supplementary major medical plans typically provide coverage for expenses after a deductible has been met, rather than paying a flat daily benefit. Basic hospital coverage often has limitations on the types of services covered and may not provide a direct payout like a hospital indemnity plan. Industrial health insurance usually offers limited benefits and is more tailored to specific employment situations rather than providing comprehensive or flat-rate benefits for hospital stays.