What Is Hospital Cash Benefit?

What Is Hospital Cash Benefit?

The hospital cash benefit is a plan which offers a payment every day you are hospitalised. It is not linked to the actual cost incurred in your treatment. This benefit will give you a cash benefit for the number of days you are in the hospital. If you are in ICU, the benefit amount will increase from its last amount per day.

Hospital cash benefits can be offered to an individual in 3 ways: as a standard of their plan, part of another health insurance plan, and optional rider in a health insurance plan. This plan is offered for policy days, say 30 days. Since this plan does not require you to pay any treatment cost, they are pretty affordable, and hence it is an optional thing you can take. If it is not linked to treatment cost, it is called a fixed health insurance plan. Explore affordable group health plan for startups and small company from Plum Insurance.

What is covered under the hospital cash benefit?

A health insurance policy covers almost every expense. But some expenses which are not covered by the health insurance policy are called inadmissible expenses. For example, x-rays charges, surgical accessories, expenses of other family members are not covered under this plan. The hospitalisation for 24-48 hours is enough to avail of the benefit of this plan. If hospitalisation is for less, the valid period benefit gets canceled.

A lump-sum amount is provided to the patient in hospitalisation by a daily cash benefit scheme. The injured person uses the amount according to its need. Health insurance doesn’t provide money for additional expenses, so the cash benefit amount can be used to meet other costs or losses due to accidents.

⚡️Benefits of daily hospital cash plan:

The benefits of the daily hospital cash plan are as follows:

  • Hospital cash benefit covers the expenses daily like surgical accessories, x-ray charges, etc., which are inadmissible under group health insurance plans.
  • The amount of hospital cash benefit is fixed. However, the daily expense is higher or low than the daily cash benefit.
  • The daily cash benefit is like a blessing during difficult times when the pocket doesn’t allow you to spend more than its capacity.

💡 Coverage limit under hospital cash benefit:

The amount is fixed and ranges from Rs. 100 to 10,000, and it varies from one insurer to another. It is required to check the limit of cash benefits by every individual while purchasing the policy of the hospital cash plan.

If the health insurance plan has already mentioned a clause of hospital cash benefit, then the amount is provided on a percentage% basis of the sum insured.

🔗 The validity period of hospital cash benefit:

A hospital cash benefit is valid for 15 to 45 days from the issue date. When purchasing a policy, the actual validity of this benefit is varied from one health insurance provider to the other.

What is group health insurance?

Group health insurance is a policy that provides benefits to a group of people of corporate society, such as employees of a company or members of an organization. This policy is purchased by big companies or organizations that provide extra medical benefits as a bonus to their employees.

The employer also contributes towards the premium amount of the group health insurance plan. It is also known as a corporate health insurance policy. It includes daily hospital benefits, critical illness, hospitalisation due to covid, maternity hospitalisation, etc.

Benefits of group health insurance:

The benefits of group health insurance for employers:

  • Helps in retention of employees: The employees are getting new opportunities daily. To retain a particular employee in a company for many years needs to provide them some extra benefits in group health insurance for him and his family. It will help in increasing the chances of its staying.
  • Tax benefits: The employer and the employee contribute to the group’s health insurance policies. Thus, this policy provides tax benefits to the employer if they offer such policies to its employees.
  • Motivated employees: As you know, medical expenses cover most of a person’s income. If the employer covers it, it will motivate employees to give their best towards the organization.
  • Better benefits at low cost: The health insurance policy is cheaper in rates than the individual health insurance policy. We can say that this policy gave better benefits at a low price.

Conclusion 🎯

The daily hospital cash plan is like a fixed benefit health insurance plan. But under this plan, the benefit is received daily to an injured person, which helps meet day-to-day inadmissible expenses. The cash benefit plan replaces the loss incurred at the time of hospitalisation.

It is also a part of a group health insurance plan. The cash benefit is provided for a fixed period, and sometimes, it is already included in the group health insurance plan. Different companies in different figures have already set the amount. The hospitalisation is not less than 24 hours to benefit from this plan. Click here to visitPlum Group Health Insurance Company.


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