The hospital cash insurance is a form of income medical insurance that will pay you a specific amount of cash benefit (at fixed rate – e.g. 150/day). The insured person must be admitted for hospitalisation due to an accident or sickness.
Some of the features of this kind of hospital cash insurance are listed below:
1) You will receive a fixed daily cash income during the stay in hospital.
2) The amount of the payment benefit is usually chosen by the insured person. The amount will then be fixed throughout the policy period.
3) One of the advantages of hospital cash insurance is that the payout is paid on top of other insurances. This means that you will still receive the income benefit, even if you have another health care insurance or Medisave to cover you.
4) The premiums might change (usually increase) when you reach a new age-band. You will need to check with the insurer for more details.
5) Usually, there is a cap on the maximum number of days (e.g. 150 days) of the benefit that the insured person can receive per hospitalisation. Some of the hospital cash insurance policies imposed a life-time limit e.g. Maximum of 1,200 days that a person can claim for the policy.
6) Please be aware that there will be a waiting period (e.g. 30 days) from the validity date of the policy (if you are in hospitalisation due to sickness). However, there will be no waiting period if you are admitted to stay in the hospital due to injury – this mean that you can make claim from the insurance company once the policy is in-force.
7) This type of personal medical insurance will usually cover you to a specific age. (Normally at age 65 or 70)
8.) There will not be any accumulated cash value for the hospital cash insurance.
9) You can either purchase the hospital cash insurance as an individual health insurance policy or to request to add-on to your basic insurance.
10) The insurance premium is usually guaranteed renewable yearly.