Know all about Hospital Cash Health Insurance policy
Health insurance coverage shields you from rising healthcare costs, while ensuring quality treatment in state-of-the-art hospitals, thus insulating you from financial burden. But, are hospitalization expenses confined to admission and treatment alone? Not necessarily, as there are extra expenses such as daily cash required during hospitalization. This requirement is covered by a suitable hospital cash insurance policy that helps you cope with incidental costs beyond the usual coverage.
What is Hospital Cash Health Insurance?
Insurers have recognized the need for daily cash to manage ancillary expenses. The rationale for this emerges from the fact that most regular health insurance cover hospitalization expenses, but are subject to exceptions and limits. Expenses beyond these exceptions and limits can add up to a substantial amount as the treatment progresses.
Hospital Cash Cover caters to this deficiency by providing a fixed cash amount for each day of your hospitalization. This fixed amount is paid to you for each day of hospitalization, regardless of the actual expenses you incur. You can choose this cover as a rider in your regular health insurance plan at inception or buy it as a standalone hospital cash plan.
How does the Hospital Cash Health Insurance work?
Hospital Cash Health Insurance is an innovative initiative that kicks in as you are hospitalized for an admissible illness, regardless of the bill. Some of the queries pertaining to this type of policy have been answered here under:
- How long is hospital cash paid?
The period for the benefit is a variable determined by the insurer and the chosen plan. Suffice to say: the benefit is paid from 30 to 45 days on average. As the name suggests, it is a daily allowance paid during each day of your hospitalization that exceeds an overnight stay. It also means that no daily cash allowance is paid for undergoing daycare treatment.
- How much is the payable quantum?
Hospital daily cash is paid in lump-sum in a range from Rs.100 to Rs.10,000 per day of the hospitalization period, depending on the insurer and plan you choose. If you purchase hospital cash insurance as a rider on your regular health insurance plan, the amount might be defined as a percentage of the sum insured of the base policy.
- What are the underlying conditions applied to the hospital cash plan?
You must check these limitations when you choose the hospital cash plan. You have to comply with the defined waiting periods, which are usually shorter than the regular health insurance. The other aspect you need to be aware of is the period limits in a policy year. The usual ceiling is 30, 60, or 90 days, depending on the insurer and the plan.
- How do you benefit from hospital cash insurance?
You can use the additional amount to meet the additional costs not covered by your health insurance, and even compensate for other unforeseen outflows. However, you must understand that your hospital cash insurance supplements your regular health insurance, and is not a substitute for the latter.
- Does the hospital cash plan cover your ICU stay?
Your stay in the ICU is costlier than the usual hospitalization stay as the charges are higher. Often, the insurers have enhanced the daily cash payable in tune with the higher rates. In some cases, the amount is doubled from the normal. Thus, if your normal daily hospital allowance was Rs.1,000, you are paid Rs.2,000 for the duration of the ICU stay.
- Is the hospital cash insurance premium tax-exempt?
The premium paid for health insurance is eligible for tax exemption under the current laws defined by the Income Tax Act, 1961, amended from time to time. The premium for the hospital cash insurance is tax-exempt under Section 80D within the defined parameters.
Remember – the features of hospital cash cover, whether as a rider in a regular health insurance plan or as an independent policy, are specific to the plan as well as the insurer. Hence, it is important to thoroughly read and understand all the associated sub-clauses which are mentioned in the policy terms and conditions document.
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