Hospital cash insurance is a kind of health insurance benefit where a lump sum amount per day is given to the policyholder for a specified tenure. This amount can be used to meet some additional expenses not covered under health insurance and compensate for the loss of income during this period. Hence, it includes incidental expenses such as food, x-ray charges, travel, surgical expenses, etc., incurred during hospitalisation, relieving the financial stress during that period.
Features of Hospital Cash Insurance
Provided below are some of the salient features of Hospital Cash Insurance:
- This facility can be availed for every 24 hours of admission in the hospital.
- Get convalescence benefit for hospitalisation due to accidental bodily injury beyond 20 days.
- Get taxation benefits on the amount of premium paid as per the Income Tax Act of 1961 rules.
- The policy can be based on an individual sum insured basis or family floater basis, which covers self, spouse, and two dependent children, i.e. up to 25 years.
- It provides two times the daily benefit in case the policyholder or his family members are admitted to the ICU in the city of their residence.
- It provides thrice the per day benefit if the policyholder or family member is admitted to the ICU outside your residing city.
- No medical tests are needed except for Plan C and D, i.e. the insured’s age is over 55 years.
- It is provided from 6 months to 65 years and can be renewed for life.
- In the adverse claim, there is no premium loading in the case of an individual hospital cash policy.
Inclusions
- Get twice the per day benefit if the policyholder or family member is admitted to the ICU within your residing city.
- Get thrice the per day benefit if the policyholder or family member is admitted to the ICU outside your residing city.
- Get INR 5000 for stress-free recovery.
- Get an additional amount of INR 5000 as a convalescence benefit for hospitalisation purposes for 10 days or more, subject to once per hospitalisation.
- Get coverage of a maximum of 10 days for ICU admission per hospitalisation and a maximum of 20 days during the complete tenure.
Exclusions
- If the need arises for hospitalisation within the first 30 days of the beginning of the policy.
- Any pre-existing disease
- Dental treatment or surgery is excluded.
- Pregnancy or childbirth-related treatments are excluded.
- Injuries occur due to natural calamities, such as earthquakes, volcanic eruptions, avalanches, etc.
- Accidents due to drinking and driving.
- Cancer-related treatment
- Circumcision, or any other cosmetic treatments, life surgery, or plastic surgery, unless the treatment is performed within 6 months of the accident.
- Self-injury, suicide or suicide attempt.
Conclusion
Under Hospital Cash Benefit, cash payment is provided based on the number of days an insured stays in the hospital. As the medical expenses and post-follow-up care are not included, it is advised not to depend only upon hospital cash benefits against medical insurance. However, the hospital cash benefit can be combined with the medical insurance.