Hospital cash benefit are designed to cover the insured against the number of days the insured is hospitalized due to an illness/ diseases/ injury. It pays a lump sum payout to the policyholder for each and every day they need treatment as an in-patient, in either a government or private hospital or nursing home. A daily cash benefit is paid to the insured, However it should for each 24hrs spent in the hospital.

This product acts like a supplement to the existing health insurance cover. The benefit paid under the policy are guaranteed, i.E. In addition to the normal health insurance policy, regardless of the actual hospitalization expenses.

Benefits of hospital cash benefit are:

• Ideal option whether you have purchased a health insurance cover or not. However, it is recommended to buy a health insurance plan along with a hospital cash Benefit cover.
• Daily benefits are paid per day (24hrs) of hospitalization.
• Benefit will double if the insured is hospitalized in an icu. It depends on the insurance company you have chosen.
• Certain policies offer a family discount while purchasing the policy
• Certain policies provide convalescence benefit - i.E. If the insured is hospitalized for more than certain days as mentioned in the policy documents, a lump sum amount is paid.

Tax benefit:

Premium paid for hospital cash benefit is tax exempted under section 80d of the Income tax act as per the existing it law.

Claim procedure for a hospital cash benefit

The insured in Case would like to claim under this benefit will be required to provide certain documents as mentioned below.

• Claim form
• Hospitalization details (date & time of admission and discharge)
• Details of the other cash policies in force
• Discharge summary mentioning the diagnosis, date and time of admission and discharge, past medical and surgical history with duration
• All supporting documents to prove the diagnosis
• First consultation paper

What needs to be considered while buying a hospital cash benefit plan?

One needs to consider the money required to pay off the other un expected expenses which add up to the hospitalization expenses. When you buy a hospital cash benefit the claim received can be either used to pay for the hospitalization bills or any other personal expense.