Advantages of Hospital Cash Policy

Life is unpredictable and medical emergencies can happen any time. While your health insurance policies cover most of your expenses in case of an unexpected hospitalisation, there are still some costs that may not be covered that well. So, you might need an additional way to cover those expenses. You can do this with the help of a daily hospital cash plan.

What Is a Daily Hospital Cash Plan?

Your daily hospital cash insurance benefit offers a fixed amount of money for each day that you are hospitalised. This amount paid is decided at the time of purchase of the policy, and it remains fixed throughout the policy tenure. You can either avail this benefit as a standalone cover, or as a rider to your regular health insurance plan. Either way, you can take advantage of the daily hospital cash plan in case of medical emergencies.

Benefits Do Daily Hospital Cash Plans

Daily hospital cash benefit offers many advantages, due to which it is popular among people. Here are some benefits that these plans can offer to you -

1. Cover for loss of income  

Medical situations can bring about lots of changes in life, including not being able to work, thereby leading to loss of income. In case there is a temporary loss of income due to that, your daily hospital cash benefit can act as an income replacement. It can help you fulfil specific financial needs like payment of loan instalments, children’s education fees, or anything else, temporarily.

2. Unexpected hospital bills

If your health insurance policy has reached its limit and is not able to cover for some unexpected or extra medical bills, then the payout from your daily hospital cash insurance can help you for the same. This way, you will not have to go out of your way to cover for your expenses and will be able to pay off the balance claim amount.

3. Availing tax benefits

Did you know that you can claim a deduction for the premium paid towards your daily hospital cash policy? You can claim a tax benefit for premiums up to Rs. 25,000. If you are a senior citizen, you can claim the tax benefits for premiums up to Rs. 50,000. So, with the help of daily cash benefit, you can actually reduce your income tax liability to a reasonable extent.

4. Meeting ancillary costs

There can be certain exclusions that come with indemnity-based health insurance plans, which as per the terms and conditions of the policy, are not covered. But your daily cash plan can support you to meet such ancillary costs as well, thereby reducing your financial burden. So now you know that daily hospital cash plans have many benefits to offer. So it is prudent to purchase hospital cash insurance as an added cover for your expenses and avail all the advantages from the same. It is a smart decision to have such types of medical insurance plan along with your health insurance plan so that times of medical crisis do not become too much of a financial burden on you - and you and your family can calmly navigate through the same.