Hospital Cash insurance gives you protection against incidental expenses. You can buy this is as a part of your Mediclaim cover, as a rider. Alternately, you can buy a separate policy for this protection. You can select the amount of daily cash and the total period of protection. Keep in mind that you should first take adequate life insurance and health (Mediclaim) insurance. There may be waiting period and standard exclusions.
The purpose of Hospital Daily Cash Insurance policy is to reimburse you a lump sum amount of money towards expenses that are incidental to hospitalization. When you get hospitalized, someone in the family needs to stay with you or visit daily. They spend money on travel and their food at hospital. The objective of Hospital Daily Cash policy is to reimburse you for such expenses.
Some Health (Mediclaim) Insurance policies include a small component of Hospital Daily Cash in the main policy. However, generally this is not included. So please check if your existing Mediclaim policy has this cover available and if not, can this be added as a rider at the next renewal. If not, you can buy a separate policy. To avoid managing large number of policies, try and combine this cover along with Critical Illness and Personal Accident in the same policy.
For a male of age 30, Hospital Daily Cash for Rs. 1,000 for a maximum of 45 days will cost you around Rs. 1,200 p.a. So this cover is very affordable and comes handy to curtain incidental costs when you actually get hospitalized. It’s a good practice to have a hospital cash policy for yourself and your spouse. It may not be necessary to take this cover for your children. The premium usually works out expensive for senior citizens.
Before you take this policy , we suggest that you first have a health (Mediclaim) cover at a personal level and adequate life insurance cover. This is because we consider Health and Life insurance as your core protection need and hence the same must be fulfilled first. Once these are in place, you can then buy Hospital Daily Cash insurance cover.
Before you buy this policy, please check the specific terms and conditions. There may be a clause linking benefits to a minimum hospitalization of say two days. The Pre-existing diseases are not covered for a period of 2 to 4 years. There may be a waiting period for specific illnesses. Of course, there will be an initial waiting period of 30 days.
This article was originally published in Dainik Bhaskar on 21st Feb 2014.