Understanding hospital cash insurance
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.
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