What type of insurance pays a specified sum while the insured is hospitalized?

Hospital Income Insurance is designed specifically to provide a set cash benefit to individuals when they are hospitalized. This type of insurance helps to cover out-of-pocket expenses that can accumulate during a hospital stay, such as deductibles, co-pays, or other non-medical costs like transportation or household bills.

When a policyholder is hospitalized, they receive a predetermined daily or weekly benefit amount for the duration of their stay. This financial support can ease the burden of medical expenses and ensure that the insured has some income replacement during their absence from work.

In contrast, the other types of insurance mentioned serve different purposes. Life Insurance provides financial support to beneficiaries upon the insured's death, rather than any hospitalization. Long-term Care Insurance focuses on covering the costs associated with long-term care services, such as assisted living or nursing home care, rather than short-term hospitalization. Disability Insurance offers income replacement in case the insured becomes unable to work due to a disability, but does not specifically pay during hospital stays.