What is Hospital Cash Insurance?

Hospital cash insurance is a health insurance benefit that offers a lump sum payout every day to the insured during hospitalization for a particular time period. The money can be used as compensation for additional expenses that health insurance does not cover, such as any loss of income during hospitalization. While there will always be a lot of expenses that are not covered under your existing health insurance plan, no matter how expensive it is. This ultimately increases certain financial burdens that no insurance will cover. This is why insurance providers introduce hospital cash insurance, which is an insurance plan that provides a fixed sum insured daily in case the insured is hospitalised for more than 24-hours. It is a fixed daily allowance that is paid to the insured person to cover miscellaneous expenses during hospitalization. Cash insurance benefit is provided either as an in-built cover under a medical insurance policy or can be bought as an optional add-on. Some health insurance providers also offer a hospital cash insurance plan separately to manage costs beyond just medical bills, with higher payouts for ICU admissions or any other specific conditions. The policy can be on an individual sum insured basis or on a family floater basis, covering an individual, spouse, and two dependent children (up to 25 years).

When one talks about daily hospital cash insurance, it usually ranges between Rs 500 and Rs 6,000, but the actual amount can differ by insurer. It is always recommended to thoroughly check and review the policy limits while buying the hospital cash insurance. A daily hospital cash benefit policy ensures additional support during hospitalisation. It can be used to meet the expenses incurred during the hospital stay for both medical items and personal items. Individuals can use the amount to meet miscellaneous costs. Hence, there is no doubt that daily hospital cash insurance is a safety net during unforeseen circumstances when those extra expenses burn a hole in your pocket. If you already have a policy, you can include this additional advantage in your plan, or you can buy a separate policy for Hospital Cash. You can claim for every day of hospitalisation as per your plan.

With the daily hospital cash insurance, you can easily pay the healthcare expenses that are not covered under your existing health insurance plan and meet the additional costs incurred during hospitalization of policyholders.