Health insurance policies offer a wide range of benefits to cover various medical expenses incurred by individuals. One such benefit is the daily cash benefit, which provides a fixed amount of money for each day spent in the hospital.
What is Daily Cash Benefit?
The daily cash benefit is a supplementary benefit provided by health insurance policies that offers a fixed sum of money on a daily basis for every day spent in the hospital. This benefit is typically offered as a rider or add-on to existing health insurance plans and can be availed by paying an additional premium.
How Does Daily Cash Benefit Work?
Under this benefit, the policyholder receives a fixed sum of money for each day of hospitalization, regardless of the actual expenses incurred. The amount of daily cash benefit varies depending on the plan chosen and can range from a few hundred rupees to several thousand rupees per day.
The daily cash benefit is paid out for a specified number of days, which usually ranges from 30 to 90 days, depending on the policy terms. Once this period is over, the benefit ceases, and the policyholder is no longer entitled to receive the daily cash benefit.
Who Can Avail Daily Cash Benefit?
Anyone who has purchased a health insurance policy that offers daily cash benefit as a rider or add-on can avail this benefit. However, certain conditions may apply, such as a minimum number of days of hospitalization required before the benefit becomes payable.
Benefits of Daily Cash Benefit:
The daily cash benefit offers several advantages, including:
1. Additional Financial Support: The daily cash benefit provides extra financial support to policyholders during their hospital stay, which can help cover non-medical expenses such as transportation, food, and accommodation.
2. No Restrictions on Usage: Unlike other health insurance benefits that are restricted to covering specific medical expenses, the daily cash benefit can be used for any purpose, providing policyholders with greater flexibility and control over their healthcare expenses.
3. Affordable: Daily cash benefit riders are relatively affordable and can be added to existing health insurance plans for a nominal additional premium, making it an attractive option for individuals looking to enhance their coverage without incurring significant costs.
4. Supplemental Coverage: The daily cash benefit can be used as supplemental coverage to existing health insurance policies, providing an added layer of protection against unexpected medical expenses.
What should you do?
Buying a hospital daily cash plan makes a lot of sense if we take the above benefits of the plan into consideration. However, do remember that these plans should be considered as a supplement to your existing health insurance plan and not its substitute.
Hospital cash plans only provide a daily allowance in case of hospitalization while a health plan provides a more comprehensive coverage and cannot be foregone. Instead, you should add a hospital daily cash plan to your existing health plan and cover those little extra expenses which a hospitalization is bound to throw your way.
Conclusion:
The daily cash benefit is a valuable add-on to health insurance policies that provides policyholders with additional financial support during hospitalization. It offers several benefits, including flexibility, affordability, and supplemental coverage, making it an ideal option for individuals looking to enhance their healthcare coverage. However, it is essential to read the policy terms and conditions carefully to determine whether this benefit is suitable for individual needs and requirements.
