​​Understanding hospital cash insurance

hospital elderly patient

23 Oct 2018 | 1 min. read

Hospital cash insurance pays you a fixed amount of cash when you're in hospital. Find out how it works and whether it can benefit you.

Key takeaways

  • Amount paid to you may be more or less than your actual medical expenses.
  • Ask about the policy waiting period. No benefits will be paid during this time.

What is hospital cash insurance?

Hospital cash insurance pays you a fixed amount of money for each day you're hospitalised. The total amount paid under this policy may be more or less than your actual medical expenses.

Key features

  • Pays a fixed amount for each day you are warded for treatment or surgery.
  • There may be a waiting period before the benefit is paid.
  • Pays for only a maximum number of days each year or the life of the policy.
  • The policy will end once the lifetime limit is reached.
  • Waiting periods and benefit limits are different across policies.

Waiting period

A hospital cash insurance policy may have a waiting period, a defined period from the start of the policy during which benefits will not be paid under certain conditions.

If you are hospitalised during this period, no benefits would be paid.

Last updated on 02 Nov 2018