However high medical insurance you opt for, there will always be a lot of expenses that are not covered in that policy. This ultimately increases the burden which no insurance reimburses. So how about a policy that can provide you a lump sum cash without much hassle of giving claims against the bills? You will be delighted to know what is hospital cash insurance exactly.
Hospital cash insurance pays you a fixed amount at the time of taking policy in case you get hospitalized. The hospital daily cash benefit is paid irrespective of the actual bill amount and there are no bills required. The amount of insurance ranges from Rs 1000 per day to even Rs 5000 or above depending on your policy.
What is the Daily Cash Benefit in Health Insurance?
The daily cash benefit is an add-on feature in health insurance policies that provides financial support for non-medical expenses during hospitalization. It offers a fixed lump-sum amount, helping policyholders manage out-of-pocket costs that are not directly covered under standard health insurance. For instance, with Bajaj Allianz Health Insurance, you may receive a daily hospitalization allowance for up to 30 days in a policy year, reducing the financial strain of non-medical expenses.
Why is Daily Cash Benefit Important?
Hospitalization often comes with a range of non-medical expenses that can quickly add up, sometimes surpassing the medical bills themselves. These expenses might include transportation, attendant charges, food, or other incidental costs. The daily cash benefit provides a financial cushion to cover such costs, protecting your savings.
How Does the Daily Cash Benefit Work?
1. Fixed Daily Allowance
When you opt for this add-on, a fixed amount is decided at the time of policy purchase. This amount is paid daily during hospitalization for expenses unrelated to direct medical care.
2. Hospitalization Requirement
The benefit is applicable if the hospitalization exceeds 24 hours.
3. Flexible Usage
The insured or their family members can use the amount for any immediate needs or ongoing non-medical expenses.
4. Coverage Duration
The benefit typically covers up to 30 days per policy year. These days can be spread across multiple hospitalizations.
Enhanced Daily Cash Benefit for ICU
Expenses in an ICU are significantly higher than those in general wards, often due to additional tests, procedures, and specialized care. To address this, many policies offer an increased daily cash benefit during ICU stays. The specific adjustment in the allowance is outlined in the policy documents.
Key Features of the Daily Cash Benefit
- Add-On Coverage: Available as a supplement to your regular health insurance plan.
- Non-Medical Expense Support: Helps manage costs not covered under the base policy.
- Customizable Allowance: The daily amount is pre-decided and varies based on the insurer and the plan.
- ICU Flexibility: Increased benefits for ICU stays due to higher associated costs.
- Annual Limit: Covers a maximum of 30 days in a policy year, applicable across multiple hospitalizations.
Why Should You Consider the Daily Cash Benefit?
The daily cash benefit ensures that you don’t have to bear the financial burden of incidental expenses alone. It acts as a safety net, allowing you to focus on recovery without worrying about out-of-pocket costs. Adding this feature to your health insurance plan can make a significant difference in managing the overall cost of hospitalization.
Read More:
Why Health Insurance is necessary After Retirement?
What is Required to Submit a Claim Under Hospital Daily Cash Benefit?
No amount of actual charges incurred shall be required so what is hospital daily cash claim requirement? It includes:
- Documents stating proof that you were admitted to the hospital
- Documents having proof of how long you were admitted and when you were discharged.
What Are the Conditions Required to Be Fulfilled for Making a Claim Under Hospital Daily Cash Insurance?
1. Duration of hospitalization
Most of the policies require the policyholder to be hospitalized for at least 24 hours or 48 hours depending on the policy. The insurance company shall pay you the fixed amount for each admitted day till the day of discharge.
2. Ceiling on number of days
The maximum number of days this insurance will pay you the benefit also ranges from 30 days to 60 or at times even 90 days. These terms are clearly mentioned in the policy.
3. Exclusions from policy
Certain types of hospitalizations and expenses are not covered in this policy. Generally, expenses such as daycare expenses are excluded from the policy.
4. Waiting period
The waiting period is the period in which you cannot submit a claim under this
medical insurance policy. Claims are entertained only after the completion of the waiting period. Though all policies don’t have this clause yet just check what is hospital cash benefit in health insurance policy?
5. Pre-existing illness
Hospital daily cash benefit doesn’t require any prior health check-ups but it is always necessary to disclose complete and correct information. Severe
pre existing diseases in health insurance may not be covered under this policy. It is necessary to check in advance the coverage of diseases.
6. Deductible clause
Deductible is the amount you have to pay before claiming the
sum insured from the insurance company. A deductible of 24 hours is generally made applicable on all policies related to a hospital cash benefit.
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Advantages of Hospital Cash Policy
Benefits of Taking Hospital Daily Cash Policy
Standard amount
What is hospital cash insurance policy most famous for? The answer is irrespective of the amount of the bill, a standard amount is reimbursed by the insurance company. You can utilize the sum received as per your needs and you are answerable to none about that.
No Claim bonus
Health insurance policies offer
no claim bonus under which you are given a discount on your premium payment in the following year if you don’t claim anything in the previous year. Now if you have a hospital daily cash policy then you can claim under this policy if the amount is negligible and avail the benefit of no claim bonus on your main insurance policy.
Tax benefits
Sec 80D allows you to claim a deduction for the insurance taken on health. It can be used as a medium of tax planning as a deduction up to Rs 25000 is available for general citizens and up to Rs 30000 for senior citizens.
Limitation of Hospital Daily Cash
The only limitation suffered by this policy is that this policy is available to persons up to a certain age limit only. This bar varies from one insurance company to another but generally, the limit ranges from 45 to 55 years.
What Is Hospital Cash Benefit in Health Insurance If the Policyholder Is Admitted to ICU?
In cases where the policyholder is admitted in ICU, he has to incur higher expenses, and hence this policy also offers higher coverage. Normally, the daily cover amount is doubled where the situation involves ICU hospitalization.
Read More: What Is Health Insurance: Meaning, Benefits & Types
FAQs
1.“Can I claim both- health insurance and hospital daily cash insurance for the same hospitalization?” asked Asim
Yes, you can claim both for the same hospitalization. Health insurance will pay you for covered expenses while the other will give you a fixed amount.
2.Is the policy of daily cash benefit applicable for maternity and childbirth?
It depends on the policy you have opted for. It’s important to make it clear at the time of taking the policy.
3.“Do I get daily cash benefit for hospitalization related to surgeries for bypass, cancer, kidney transplant, etc.?” asked Rajeev
No, generally these are covered under
critical illness insurance. However, there are certain policies that provide for such hospitalizations also. Hence it becomes necessary to read policy properly.
*Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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