Hospital cash insurance policy protects you and your family against the difficulty that you face due to increased financial burden during hospitalisation. Having health insurance is not enough. Hospital cash plan is an add-on benefit. The immediate unwanted medical health issue can occur, and maybe you don’t have enough money to get operated. So, in addition, hospital cash insurance policy proves to be beneficial. In any medical health problem, the cost associated is high. The health insurance may have some limits, but hospital cash insurance can provide some consolation.
Difference between hospital cash insurance and health insurance
Hospital cash plan helps you by reducing hospital bills, treatment cost, medicine cost which health insurance or a medical claim cannot do. A hospital cash back plan is a defined benefit plan whereas an affordable health insurance is an indemnity plan. A health insurance policy only pays your actual hospitalisation expenses and whereas hospital cash plan pays the number of days you are hospitalised, cash expenses and others. The cash plan offered by hospital cash back plan is fixed. It does not matter whether your daily basis expense is less or more because the price is pre-fixed.
Things you consider while buying hospital cash insurance
Customise the coverage as per your need which means the days and amount on a daily basis. After that, find the terms and conditions under which you are eligible for the claim. Your documents should be completed to file a claim at the time of purchase. If the terms and conditions or coverage do not suit you, you can check the ‘lock period’ option which permits you to cancel the policy. And for this, the term applied is that you must not have any claims and that too within a limited number of days.
For example, If in case your hospital expense comes out to be Rs 1800 and the amount fixed under hospital cash insurance is Rs 1500. Then you will get the amount of Rs 1500 because it is a fixed amount and it does not matter whether your expenses are high or low. All affordable health insurance policies have terms and conditions. And hospital cash insurance also has a clause for a waiting period. The daycare procedures are not covered under this plan.
Buying a hospital cash plan is beneficial than health insurance. Although health insurance is essential, you should also consider hospital cash back plan, which can help you in paying those extra bills of hospitals. But don’t substitute the health insurance with hospital cash insurance. Instead, it should be kept as an add-on plan with your health insurance policy. When we compare both systems, we conclude that health insurance policies are a need of an individual, but if you buy a hospital cash insurance policy, it will provide you with double benefits. So, be prepared for sudden medical health issues in advance by having both the options under your belt.