Hospital Cash Insurance
- Author :
- TATA AIG Team
- Published on :
Medical costs have been increasing exponentially, and with the pandemic, they have accelerated further. One of the best ways to ensure a financial cushion if a medical emergency strikes is to have a valid health insurance plan. A health insurance plan will take care of your medical costs so that you do not have to dip into your savings. Keeping in mind the exponentially growing medical costs in the country, it’s prudent to have a health insurance policy in place. There are many types of health insurance plans that you can opt for, and one of the plans is a hospital cash insurance plan.
With a hospital cash insurance plan, you receive a lump sum daily during hospitalisation to pay for the costs that are not covered by your health insurance or substitute for any loss of income that you may face due to your illness. But, before you opt for hospital cash insurance, it is essential to have a comprehensive health insurance policy in place.
We at Tata AIG offer a range of policies such as critical illness insurance, family floater plans, covid-19 insurance plans, etc. So, analyse your needs and choose the right insurance policy for yourself and your family. You can utilise the health insurance premium calculator available on our website to calculate the premium that you have to pay for your health insurance plan.
Let us understand the daily hospital cash insurance in detail.
What is Hospital Cash Insurance?
The hospital cash insurance plan provides a fixed amount of sum insured every day of hospitalisation if the hospitalisation is of more than 24 hours. The sum insured provided to the policyholder can be utilised for miscellaneous expenses as per the needs of the policyholder.
In some cases, the hospital cash insurance can be a part of the basic health insurance plan, whereas you can include it as an optional cover in some health insurance plans. Some companies also provide hospital daily cash insurance as a separate insurance plan.
Benefits of Hospital Cash Policy
With a hospital daily cash policy, you can pay for the medical expenses that are not covered under your base health insurance policy and meet the additional expenses that you incur at the time of hospitalisation.
The limit of daily cash provided under this plan is fixed, so even if the cost incurred by you is lesser, you do not have to pay the money back to the insurer. For example, if the limit of daily cash provided to you is ₹900, and you incur daily expenses of ₹600, the insurer will pay you ₹900. So, it acts as a financial cushion when you are hospitalised and need money to handle everyday expenses.
Moreover, if the insured is admitted to the ICU, insurers usually offer double the hospital cash benefit as the expenses incurred by the insured are higher. For example, if the limit of daily cash provided to you is ₹1200, the insurer will pay you ₹2400 if you are admitted to the ICU.
Coverage Provided Under Daily Hospital Cash Policy
If you have a health insurance policy, most of the expenses will be borne by the insurer if you are hospitalised, but there are some expenses that the medical insurance plan does not cover. The daily hospital cash benefit insurance plan provides coverage for inadmissible expenses like surgical accessories, visiting family members, etc.
Also, if you are hospitalised for more than 24 hours, you do not have to provide any bills as proof to get the benefit from the daily hospital cash policy. But, the daily cash insurance plan gets activated only if the hospitalisation is admissible.
If you are hospitalised for a specific medical treatment, then the insurer will provide the daily cash as a benefit, and the money can be utilised by the insurer as per their needs.
Moreover, if there is a loss of income due to hospitalisation, you can compensate for it using the daily cash benefit that will be provided by the plan.
Limit of Coverage Provided by the Hospital Daily Cash Insurance Plan
Generally, the daily hospital cash benefit provided under the plan ranges from ₹100 to ₹10000, but it differs from insurer to insurer. Therefore, it is advisable to check the policy document to know the information about the limit of daily cash that is provided under the plan.
If the hospital cash policy comes un-built in your base health insurance policy, the coverage provided to you will be a certain percentage of the sum insured. This also depends on the insurer, and you must check the policy wordings to know more about this.
Tenure of Benefit Under the Daily Hospital Cash Benefit Plan
On average, the daily hospital cash benefit is available for 15 days to 45 days, depending upon the insurer. The information is mentioned in the policy, and it is essential to read the policy carefully so that you know the exact tenure for which the benefit can be availed if you are hospitalised for more than 24 hours.
This is all the information that you need to know about the daily hospital cash policy. The plan is advantageous to cover the daily expenses that you incur at the time of hospitalisation of more than 24 hours. Therefore, it is essential that you read the policy carefully to know all the benefits provided under the plan.
Also, along with this plan buying a comprehensive health insurance policy is essential as it can help you take care of huge medical expenses that you incur in case of a medical emergency and with the danger of the pandemic still looming, medical insurance has become prudent now more than ever.
With the Tata AIG health insurance plan, you will have access to a network of 7200+ hospitals where you can claim cashless health insurance and a range of policies like Covid-19 insurance to choose from. So, analyse your requirements, compare health insurance plans, and choose a plan that optimally suits all your needs.