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A fixed indemnity plan is one that pays a set amount of money for any medical services you receive. So, for example, if your plan specifies a $5000 per day benefit for a Hospital Stay then your plan will pay the specified amount outlined in the policy whether the bill is more or less. If the bill is more, then you would be responsible for the excess charges if it is less then the remaining monies would be yours to keep. Because the benefit is preset and paid out regardless of what the total bill for the qualified service might be, fixed indemnity insurance is sometimes called fixed benefit insurance or fee for service insurance. Flexed Indemnity plans are good for those who want affordable coverage that they can customize to meet their individual needs.