In this fast-paced world that we live in, health is one of the most valuable assets. Our health is at significant risk due to our modern lifestyle and most companies have included mediclaim or health insurance as part of their salary benefits. However, some people also invest in a health insurance policy in an individual capacity. Although most health insurance plans provide comprehensive coverage, there are certain expenses that will not be covered. In order to make up for that, health insurance providers have designed the hospital cash insurance to help protect your finances.
Hospital cash or hospicash insurance is a type of insurance policy that pays a fixed amount to cover miscellaneous expenses for each day of hospitalisation that exceeds 24 hours. This daily cash benefit cover is typically provided as a basic plan or can be bought as an additional cover.
Hospital Cash Insurance provides a lot of benefits. Some of them are:
Taking care of hospital bills: In case of a large hospital bill claim, your health insurance might not be able to cover the entire claim. A hospicash insurance policy will aid you in paying for the additional expenses that might come up.
Standard amount: You will receive a predefined amount as reimbursement by the insurer irrespective of the bill amount. You can use this money according to your needs and requirements and you do not have to declare it.
No need of supporting documentation: The claim process of hospital cash insurance is straightforward and hassle-free. You do not have to submit any supporting bills for hospitalisation for more than 24 hours.
Tax benefits: Section 80D of the Income Tax Act lets you claim tax deduction for health insurances that you have taken. It can be used for tax planning as a tax deduction of up to ₹25,000 for non-senior citizens and up to ₹30,000 for senior citizens are available.
No Claim Bonus (NCB): Health insurance plans provide NCB in which you will be given a discount on renewal premium if you do not claim anything or claim very less the current year. If you are hospitalised for a minor complication and the bill is less, you can pay for it using the hospital cash insurance rather than making a health insurance claim. This will allow you to claim the NCB of the health insurance policy which will otherwise be claimed.
If the insured individual is hospitalised for a medical treatment, then the insurer will pay a lump sum daily. The cash benefit ranges from ₹100-₹1000 but the actual figure will vary from insurer to insurer. You can also use this to cover up for loss of income during the hospitalisation period.
Certain expenses are not covered by health insurance plans, even though the mediclaim policy covers hospitalisation charges. Expenses like X-ray costs, blood tests, surgical accessories, etc, are usually not covered. A hospicash policy gives you a lump sum in the event of hospitalisation, which you can use as you see fit.
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If the insured individual is admitted to the ICU, then the cash benefit is doubled. For example: if the cash benefit for a regular room is ₹1500, when admitted in an ICU it becomes ₹3000.
Hospital cash insurance is a saviour during difficult times when the extra expenses burn a hole in your pocket. It gives you a fixed amount of money each day that you are hospitalised. It is especially useful in cases where you are seeking medical treatments regularly and need cash to cover these expenses.