Sudden hospitalisations can genuinely take a toll on your finances, not just because of the medical bills but also due to a bunch of extra costs that can sneak up on you. While standard health insurance typically covers the main medical expenses, there are plenty of out-of-pocket costs that can add up during your time in the hospital.
That is where hospital cash insurance comes in handy, offering a daily cash benefit to help you tackle those extra expenses.
What is Hospital Cash Insurance?
Hospital cash insurance is a type of policy that provides a set amount of money for each day you spend in the hospital, usually starting after the insured person has been admitted for at least 24 hours.
Unlike regular health insurance, which covers your medical bills, this insurance gives you a daily cash benefit no matter what your hospital costs are. You can use this payout however you like, whether for transportation, meals, paying a caregiver, or even making up for lost wages.
How Does Hospital Cash Insurance Work?
The way hospital cash insurance works is simple, yet it is a powerful tool for managing your finances during medical emergencies.
- Gives a Fixed Daily Allowance
When you sign up for the policy, you choose a daily benefit amount. This can range from Rs. 1,000 to Rs. 5,000 or even more each day, depending on the specifics of your policy. So, if you end up in the hospital for five days with an Rs. 2,000 daily benefits, you would receive a total payment of Rs. 10,000, no matter what your actual hospital bill comes to.
- No Need to Provide the Bills
Unlike cashless health insurance, where you must deal with submitting bills for reimbursement or direct payment, hospital cash insurance gives you a fixed amount without needing to show any proof of expenses. This makes the claims process super quick and easy.
- Offer Coverage for ICU and Surgeries
Many of these policies come with extra benefits for ICU stays or major surgeries. For instance, if a person is admitted to the ICU, they can get double the daily benefit, and some policies even offer higher payouts for specific surgeries, especially those involving critical organs.
- Buy Them Standalone or as an Add-on
You can get hospital cash insurance either as a standalone policy or as an add-on to your current health insurance plan. When you combine them, it enhances your overall financial safety net during hospital stays.
Inclusions in a Hospital Cash Insurance Policy
Hospital cash insurance is tailored to help with a variety of non-medical and incidental costs that standard health insurance usually does not cover. These comprise:
- Transportation Costs
The daily trips for family members or the patient can add up, especially if the hospital is quite a distance from home.
- Attendant Charges
Sometimes, you need to hire someone to help a patient during their hospital stay, and unfortunately, regular insurance does not cover these types of expenses.
- Food and Lodging
When a loved one is in the hospital for an extended period, meals and accommodation for family members or attendants can become significant expenses.
- Loss of Income
If the patient or a caregiver cannot work while in the hospital, the daily cash benefit can help make up for those lost wages.
- Other Incidental Expenses
This can include costs for X-rays, medical tests, surgical supplies, and doctor visitation fees that your primary health plan may not reimburse.
Who Needs Hospital Cash Insurance?
While hospital cash insurance can be a great asset for many, it is particularly helpful for:
- Salaried People and Daily Wage Earners
For those who may miss income while hospitalised, the daily cash payout can be a lifesaver, helping to cover everyday expenses and bills.
- Self-Employed Individuals
If your income is not fixed, this insurance acts as a safety net during times when you cannot work due to hospitalisation.
- Families with Dependents
If a person has kids or elderly family members depending on them, the cash benefit can ease the burden of household expenses.
- People with Little Savings
For those without a robust emergency fund, the daily allowance can help their families avoid tapping into their savings or taking unnecessary loans.
- Existing Health Insurance Owners
Even if someone already has a cashless health insurance plan, adding hospital cash insurance and health insurance plans for family can boost their overall coverage by taking care of non-medical and incidental costs.
When Should You Think About Hospital Cash Insurance?
A hospital cash insurance policy is not designed to replace a comprehensive medical insurance plan. It is more like a precautionary extra layer of protection. Therefore, you may want to consider owning one if:
- You are looking to cover unexpected costs that your main policy does not take care of.
- You need a financial cushion to help your dependent family members while you are in the hospital.
- You want to ease the financial burden on yourself arising from the loss of income during hospitalisation.
Final Words
Hospital cash insurance provides a simple yet effective way to manage the financial impact of hospitalisation by offering a daily cash benefit for each day spent in the hospital. It is best viewed as a supplementary plan to your primary health insurance, giving you the flexibility to cover incidental expenses and loss of income.
Whether you already have a cashless health insurance plan or are looking for additional financial support during medical emergencies, hospital cash insurance can be a valuable addition to your protection portfolio.