What is hospital cash insurance and how does it benefit policyholders?

In an era where healthcare costs are rising steadily, having adequate health insurance coverage has become essential for individuals and families. While traditional health insurance policies cover hospitalization expenses, they may not address the day-to-day expenses incurred during hospital stays.

This is where a hospital cash insurance policy comes into play, offering a unique and supplementary solution to manage additional expenses during hospitalization.

What is a hospital cash insurance policy?

A hospital cash insurance policy is a specialized health insurance plan designed to provide policyholders with a fixed cash benefit for each day they are admitted to a hospital due to illness or injury.

Unlike traditional health insurance that reimburses actual medical expenses, this policy provides daily cash allowances to cover non-medical expenses arising during hospitalization. The cash benefits received from the policy are usually tax-free and can be used at the policyholder's discretion.

What are the key features of hospital cash insurance policy?

Daily cash benefit

The daily cash benefit is the primary feature of a hospital cash insurance policy, providing crucial financial support to the insured during their hospital stay. As a policyholder, the individual is entitled to receive a fixed cash benefit for each day of hospitalization. This amount is predetermined at the time of purchasing the policy and varies depending on the specific policy chosen.

No restrictions on expenses

Unlike traditional health insurance plans that often restrict coverage to specific medical expenses, this policy allows the insured to use the cash received for any non-medical expenses incurred during their hospitalization.

This means that the cash benefit can be utilized for various incidental costs, such as transportation expenses to and from the hospital, meals during the stay, and even lodging expenses for family members who might accompany the insured.

Flexibility

The flexibility provided by a hospital cash insurance policy is a major advantage for policyholders. They have complete autonomy over how they utilize the cash benefit, allowing them to address their immediate financial needs arising due to hospitalization.

This level of freedom provides a sense of control and empowers the insured to handle their situation without being burdened by financial stress during an already challenging time.

Comprehensive coverage

Hospital cash insurance policy acts as supplementary coverage to a standard health insurance plan. While traditional health insurance policies cover hospitalization expenses related to medical treatments, surgeries, and diagnostics, they may not address the daily living expenses that often arise during hospital stays.

Hospital cash insurance fills this gap by providing a steady cash flow to the insured, allowing them to manage their lifestyle expenses without worrying about additional financial strains.

No pre approval required

Another significant advantage of hospital cash insurance is that it does not require pre-approval for cash benefits to be availed. Unlike traditional health insurance claims that often necessitate pre-authorization for specific medical procedures.

Hospital cash insurance allows the insured to access the cash benefit without such requirements. This streamlined claim process simplifies the overall experience and ensures that policyholders receive timely financial assistance when they need it the most.

As healthcare costs continue to rise, a hospital cash insurance policy serves as an essential component of a well-rounded financial plan, ensuring that healthcare needs are adequately met without compromising on daily living expenses.

Date: 09/08/2023/ Source: Live Mint