Hospital Daily Cash Insurance Policy: Know Features And Benefits
Health insurance companies are incorporating alluring and new products to entice customers toward different health insurance plans. Hospital daily cash allowance is an intriguing product that has taken the health insurance industry to the next level. This coverage offers a lump sum amount during your hospitalization that you can utilize to repay other expenses or any loss of income during your hospitalization period?
What is a daily cash allowance in health insurance?
Hospital daily cash allowance embraces policyholders with a sum insured for more than 24 hours of hospitalization. This fixed allowance is paid to the policyholders to meet multifarious expenses during their hospitalization period. So, your policy offers Rs. 1000 per day of hospitalization, then irrespective of your actual charges, you will get this amount from your insurer. This daily cash plan is usually offered either in the base plan or as an additional cover. Some health insurers also offer separate hospital medical cash plans to policyholders.
The range of daily cash allowance is between Rs. 500 to Rs. 3000 based on your insurance plans. But if you are admitted to the ICU, then your daily cash allowance will be twice as per your policy terms and conditions.
Coverage Under Daily Hospital Cash Allowance
A comprehensive health insurance policy reimburses all types of medical expenditures during your hospitalization. But still, certain healthcare costs are not covered by the policy plan and these are called inadmissible expenses. These types of expenses could be surgical accessories, X-Ray charges, costs related to accompanying family members, etc.
- Without asking for any additional bills, you may get daily cash allowance benefits from your insurer
- You need to produce legal proof of hospitalization for at least 24 to 48 hours to avail of this benefit
- This coverage features welcomes policyholders with a hefty amount of cash at the time of hospitalization
- As per your needs, you can use this benefit to bear the costs of superfluous expenses like household expenditures, tuition fees for children, etc.
- This amount can easily be used to compensate for the loss of income during your hospitalization time frame if you are the sole breadwinner of the family
Longevity Of Daily Cash Allowance Benefit
After purchasing a policy, your health insurer will offer you a daily cash allowance for up to 30 to 45 days. If you need to stay in the hospital for 30 days for your treatment, then you will get a daily cash allowance for 30 days from your insurer. This amount is not the same for all insurers, so, you must opt for a policy that offers a hefty cash amount on hospitalization.
The health insurance companies that offer this benefit inbuilt in their health insurance plans usually give a certain percentage of the sum insured amount to their policyholders.
Things to Consider While Opting for Daily Cash Benefits
Certain points you should evaluate before purchasing this allowance:
- You need to be hospitalized for a minimum of 24-48 hours to avail yourself of this benefit
- You are not eligible for daycare treatment procedures under this type of coverage benefit
- There are upper limits for 30, 60 or 90 days of hospitalization in the policy
- You need to complete your waiting period to get the benefits under the policy
What are the benefits of a daily cash allowance plan?
Let’s consider some of the prime advantages of a daily cash allowance plan:
1. Bolster all your additional expenses
Though a health insurance policy offers coverage for most of your medical expenditures at the time of hospitalization, certain expenses will not be covered by your policy plan. These inadmissible expenses could be X-Ray charges, gloves, PPE kits, etc. But your daily hospital cash allowance will give you a substantial cash amount that can cover all these miscellaneous expenses during your hospitalization phase.
2. Compensates your loss of income
If you are the only bread earner of your family, then your family members may face difficulties to meet their regular expenses during your hospitalization period. But a daily cash allowance compensates for your loss of income and supports your family members to fulfill their needs.
3. Preserving your No claim Bonus
If you are admitted to a hospital for minor health conditions/injuries and your bill is not very high, then by using the hospital cash allowance benefit, you can pay off your healthcare bills. In this scenario, you don’t need to initiate a claim for your medical expenses. So, you can preserve your No Claim Bonuses for future purposes.
These are some of the unparalleled benefits of the hospital daily cash allowance. But you must remember that to enjoy this benefit, you need to get hospitalized. A health insurance policy will welcome you with a chunk of benefits and coverage. So, health insurance plans are irreplaceable. You can purchase an additional daily cash allowance plan along with your base policy to pay off those miscellaneous expenses that are not covered by your policy.
What is the minimum age to buy a daily hospital cash allowance insurance plan?
There is no special minimum age limit for the hospital cash allowance. The age limit is the same as the base policy plan.
What is the minimum duration of a hospital cash plan?
A daily cash allowance benefit is applicable for 15 days to 45 days. But the number of days may vary from one health insurer to the other.
What is an HDC claim?
Your purchased health insurance policy will cover you in case of accidental injury or sickness resulting in hospitalization during the policy period. You can get the coverage for a maximum of 30 to 60 days within the policy period.
What is the difference between hospitalization coverage and hospital cash cover?
Hospitalization coverage means when an insurance company offers healthcare coverage to the policyholder. This type of coverage bears all the costs for surgeries, daycare procedures, etc. On the other hand, hospital cash cover gives you a fixed amount on each day of hospitalization of more than 24-hour. By using this amount, the policyholder can pay off various expenses.
What is the maximum daily cash option in hospital daily cash products?
This depends on your purchased policy plan. The range of daily cash allowance is between Rs. 500 to Rs. 3000.