What is daily hospital cash in Health Insurance?

Daily Hospital Cash: A Comprehensive Guide

There will always be a lot of costs that are not covered by your Health Insurance policy, no matter how expensive it is. This ultimately increases certain financial burdens that no insurance will cover. Hence, you will be glad to know more about daily hospital cash.

How Daily Hospital Cash Works in Health Insurance Policies?

Daily hospital cash provide you with a fixed amount of money for each day of hospitalisation.

This payment can be utilised for different expenses during your hospital stay. Also, this will be beneficial for the insured to cover any other out-of-pocket expenses like food, petrol, for the attendant, etc. A plan which seeks to supplement your normal Health Insurance coverage, a hospital daily cash plan is a valuable add-on benefit to your existing Health Insurance.

This benefit is paid directly to the policyholder and can be used to cover expenses such as transportation, lodging, and other out-of-pocket costs associated with a hospital stay.

This type of coverage is intended to ease the financial burden of hospitalisation by providing additional funds to policyholders. It’s important to note that it is not a replacement for Health Insurance, but rather an additional benefit that can help to cover additional expenses while someone is hospitalised.

The coverage limit under the daily hospital cash policy can be a minimum of Rs 100, and it can go up to a maximum of Rs 10,000. However, the coverage limit can also differ depending on the plan you have selected and the health insurance company, because there is no fixed limit. Having an understanding of hospital cash meaning in health insurance helps you plan better for your future.

Why is daily hospital cash insurance important?

This policy enhances your existing health policy and offers good financial assistance during difficult times.

Benefits of daily hospital cash insurance

Valid for multiple days: The benefit of daily cash is valid for up to the dates mentioned in the policy documents. However, this time period differs from one insurer to another. Similarly, the minimum number of days of hospitalisation to avail the benefits of daily cash insurance also depends on the insurance company.

Eligible to use the excess amount: If your daily expenses are less than the assigned amount under your hospital cash insurance, you will still receive the entire amount, and you can use it according to your requirements.

Tax benefits: You can deduct the cost premium of your Health Insurance under Section 80D. Given that regular citizens are eligible for a deduction of up to Rs. 25000, it can be used as a medium for tax planning.

Each insurance company offers different benefits in its policies. Refer to the company’s terms and conditions to know more.

Coverage of daily hospital cash insurance

Daily Hospital cash insurance usually ranges from Rs 500 to Rs 6,000, but the actual amount will vary from one insurer to another. It is suggested to check the limit in the policy at the time of buying the hospital cash insurance.

A daily hospital cash benefit policy ensures extra support during hospitalisation. It can be used to meet the expenses incurred during the hospital stay on both medical items and personal items. Individuals can use the amount to meet miscellaneous costs.

How to choose a daily hospital cash insurance policy?

You should consider the plan's benefits before you consider the price of the plan. Choose a policy that meets your requirements, and compare plans on benefits and costs that cater to your needs.

Talk to an approved agent or the insurance company about the coverage, documents needed, whether it is already covered under any existing policy and other important features. You can compare various Health Insurance company policies online, as the coverage and plans vary from company to company. Read the terms and conditions carefully before buying a policy.

Common Misconceptions Regarding Daily Hospital Cash

1. It is an alternative to Health Insurance : Daily Hospital Cash is commonly misconstrued as an alternative to a general health insurance policy. Actually, it is supplementary to augment a particular health insurance coverage and supplement expenses not covered within the basic scheme for hospitalisation.
2. It only Covers Major Ailments : Many believe Daily Hospital Cash pays only in cases of major illness or surgery. On the contrary, most benefits are provided for any kind of hospitalisation case, such as minor procedures, accidents, and other medical admissions.
3. Claims Procedure : Many believe that the claims procedure is cumbersome. The opposite is true; however, it is very simple and less painful than a traditional reimbursement claim procedure.

Key Takeaways

1. Policy Limits : While Daily Hospital Cash offers very important benefits, one must be aware of restrictions and limitations. For instance, some policies may cap the total amount payable during the policy year or the conditions for claiming the cash benefit.
2. Compatibility with Other Benefits : Think about the coverage of Daily Hospital Cash and how it would fit in with your other health insurance. Consider how it ties together so that cash benefits do not leave holes in your overall financial coverage.
3. Comparison Shopping : Don't get this wrong. Any insurance product must be compared with various policies and features. Look for an insurer that offers some competitive daily cash limits, reasonable premiums, and a reputation for efficiency in claim processing.
4. Read Customer Reviews : Check out various policies and the Daily Hospital Cash of different insurers, and look for reviews and feedback from their customers. This may give you ideas on how the insurer processes claims, its quality of customer service, and how the claim is paid.

Conclusion

Daily hospital cash insurance is undoubtedly a safety net during difficult times when those extra expenses weigh heavily on the pocket. If you already have a policy, you can include this extra benefit in your plan, or you can buy a separate policy for Hospital Cash. Check Star Health Insurance for information regarding the policy.  Star Health Insurance also provides a daily hospital cash benefit in its health insurance plans.