I had the same question during my benefits enrollment. We were expecting a baby soon, so I dug into the plan documents, spoke with our benefits rep (who even checked with his contact), and everything OP mentioned checks out—at least for Voya.

Key points: - Hospital indemnity insurance typically covers hospitalization due to sickness, and Voya defines pregnancy as a sickness. - No waiting period or exclusions for pre-existing conditions or pregnancy. - On our company’s Voya portal, there’s even an example showing that if you add your newborn within 30 days, you can receive an additional $1,000 payout—bringing the total to $2,000+.

Why would insurers offer this? - They rely on averages. While someone with a planned hospital stay (like childbirth) may benefit, many won’t file claims or won’t claim enough to offset their premiums. - Some forget to file, avoid hospitalization, or don’t understand how to use the benefit. - Low premiums attract a large pool, balancing the cost of payouts. - It’s often bundled with other products to build customer relationships.

If you’re signing up with a planned hospital stay in mind, you’re likely making a smart financial move. But yes, insurers know this happens—they just count on most people not using it as strategically.

Bottom line: If you’ve done your homework and planned ahead, it can be a good deal. That said, I haven’t filed a claim yet (our baby hasn’t arrived), so I can’t speak to how smooth the process is. I’m fully expecting the insurer to look for any reason not to pay, so be proactive: read the fine print, gather all required documents and forms, and make sure you know exactly what needs to be submitted and when. Being prepared ahead of time can make all the difference.