A detailed guide on daily hospital cash benefit

Kumaresh is a 34-year-old gentleman who lives in Delhi with his 32-year-old wife. They have a daughter who is 4 years old. Kumaresh works in a private company on a contractual basis. Kumaresh is a calculative and wise person. So, he purchased a family floater policy of Rs. 10 lakh covering all three. Kumaresh was diagnosed with kidney stone problems and for that, he was admitted to a hospital. All of his treatment expenses were covered by the insurance policy. Not only that but also Kumaresh received daily hospital cash benefits from his insurer for the days he was hospitalized. This daily hospital cash insurance coverage helped his family members to meet up their daily expenses comfortably.

Though these days many people are purchasing various health insurance policies, they have a scant idea about this daily hospital cash policy. Here, we are going to describe what is hospital cash benefit and how you are going to get benefits from this plan.

Daily Hospital Cash Plan

The daily cash allowance benefit of a health insurance policy is a fixed amount for each day that you receive from your insurer during your hospitalization. This benefit is pre-decided at the time of purchasing a policy. So, it remains fixed. You can choose this benefit as a rider to your existing health insurance policy or it may be a standalone policy cover.

Coverage under Daily Hospital Cash Benefit

If you purchase a comprehensive health insurance policy, it offers coverage for most of your healthcare expenses at the time of hospitalization. But, some medical costs are not covered by the policy, and these are known as inadmissible expenses. These expenses are consumables, costs related to accompanying family members, etc.

• You are eligible for daily cash allowance benefits without asking for any supporting bills
• You need a valid proof of hospitalization of at least 48 hours or more to enjoy this benefit
• In case of becoming inadmissible, the benefit is declined.
• This feature offers a fixed amount during the time of hospitalization
• You can utilize this benefit as per your requirements such as meeting additional expenses like household expenditures, tuition fees for children, etc.
• This amount can also be utilized to compensate for the loss of income during your hospitalization period

What will happen if the patient is admitted to the ICU?

The expenses are on the higher side if the patient is admitted to the ICU. In this scenario, health insurance policies double the daily cash benefit amount to insured policyholders. For example, you are getting Rs. 1000 as the daily cash allowance from your insurance company during your hospitalization. But if you are shifted to ICU, the insurer will enhance the amount to Rs 2,000 depending on the policy you have selected.

Longevity of Daily Hospital Cash Benefit

You will get daily cash allowance benefits from your insurer for up to 30 to 45 days in a policy year. If you need to stay in a hospital for your treatment for 30 days, you can receive a daily hospital cash allowance for 30 days. Though the amount and duration may vary from insurer to insurer, still, you must select a health policy that comes with hospital cash benefits.

How much amount can be received?

The amount under daily hospital cash benefit can range between Rs. 100 and Rs. 10,000, on average. Insurance companies that offer this benefit inbuilt in the health insurance policy, usually pay a certain percentage of the sum insured amount.

Things to consider while opting for daily cash benefits

There are certain things that you should remember while choosing this benefit.

• To enjoy the benefit, you need to be hospitalized for a minimum of 48 hours or more.
• This type of facility is not offered for daycare treatment procedures
• There is a ceiling of 30, 60, or 90 days on the number of hospitalization days in a policy year 
• Every health policy comes with a waiting period to enjoy daily cash benefits under it

What are the benefits of a daily cash allowance plan?

Let’s take a look at some of the benefits of a daily cash allowance plan.

• Cushion for additional expenses: A health insurance policy offers most of the coverage for your hospital expenses, but expenses are not still covered by the policy. These expenses are consumable like gloves, PPE kits, etc., and they are known for inadmissible expenses. Once you are hospitalized, your daily cash allowance will offer you a lump sum amount that you can utilize as per your needs and requirements.
• Compensates your loss of income: Your daily cash benefits compensate for your loss of income due to hospitalization.
• Use towards household expenditures and miscellaneous expenses: If you are the sole breadwinner of your family, then in case of your hospitalization, your family may face financial difficulties. If your income is not stable, then this allowance helps your family members to meet household expenses and other miscellaneous expenses.
• Preserving your No claim Bonus: If you are hospitalized for a minor health condition and your bill is not very high, you can pay off your hospital bill using your savings. You don’t need to raise a claim for your healthcare expenses. In this way, you can preserve your No Claim Bonuses that you could have lost otherwise.

These are the benefits of the daily hospital cash allowance. But you should understand that a daily cash allowance will pay you the money once you are hospitalized. On the other hand, a health insurance policy will offer you more comprehensive coverage and benefits, thus, it can’t be inescapable. You can incorporate your daily cash allowance plan into your existing healthcare policy to pay off those extra expenses that your policy won’t cover.