We discuss why you need Daily Hospital Cash Insurance Plan or Hospital Daily Cash Insurance Plan
It is a health insurance plan which gives you daily cash payments
It is a great supplement to standard health insurance policies
Be it Individual Health Insurance Plan, Family Floater Health Insurance Plan or Critical Illness Plan
It minimises financial damage from hospitalisation by covering expenses not covered in regular plans
Daily cash payments cover the expenses not covered in regular health insurance policies
This prevents you from prematurely using savings or take loans
You also don’t need to have a large emergency fund or keep lots of cash at home
Daily cash payments are a percentage of the insurance coverage
They cover you for a certain number of days such as 7, 14, 30 days, going up to 90 days
Daily cash payments start on hospitalisation for 24-48 hours, depending on the policy conditions
Being a defined benefit plan, you don’t need to provide bills and you get full benefits when you meet the trigger condition
Even if you don’t incur the expenses equivalent to the daily cash benefit, you retain the excess amount
There could be expenses like hospital protective equipment, surgical equipment and X-rays
In some cases, it may even play a small role in absorbing income disruptions
You also don’t need to have large emergency funds which give low returns due to their high liquidity
There is typically a waiting period of 30 days which you need to see through before you get covered
You also don’t get covered for pre-existing conditions for specified policy period of 2, 3, or 4 years
You typically get covered for other kinds of hospitalisations
Some Daily Hospital Cash Benefit Plans may provide tax deductions under Section 80D
All family members get insurance coverage under this plan
The waiting period for these plans are shorter than standard health insurance policies and daycare is not covered
It is a great supplement to Individual Health Plans (IHP), Family Floater Plans, and Critical Illness Insurance Plans
Typically, the daily cash payments are between Rs 500-3,000 depending on your insurance amount and policy