I have a dream.
It is neither ambitious nor noble.
In fact, it is a lazy man’s fantasy.
I dream that there comes a day where I am paid for lying on the bed.
The longer I stay in bed, the more money I earn.
What a wonderful world that would be!
Do you have the same wish as me?
I bet you do!
And to make it come true, all we have to do is to get a hospital cash policy.
Strictly speaking, you must be staying in a hospital ward to realise that wish.
It may not be the best situation you want to be in.
But hey, it is the closest you can get to being paid for sleeping!
What exactly is hospital cash insurance?
This one comes in different names.
Let’s count them.
1) Hospital Cash
2) Daily Hospital Cash
3) Hospital Allowance
4) Hospital Income
5) Hospital Cash Payout
Wow! It is almost as long as this dude’s name!!
It is almost like there is no standard name for it.
No worries though.
As long as the payout is based on the number of days that you have been hospitalised, It is a hospital cash plan.
Why Do I Want It?
Your hospitalisation plan is on an indemnity basis.
Okay. That does not sound simple.
What it means is that your Integrated Shield Plan pays for whatever the hospital charges.
It does not pay anything extra.
You do not get a single cent out of it.
It is fine if you are a full-time monthly salaried employee with a decent boss.
You get paid as long as you can produce your hospitalisation leave.
But there are many people who do not have that luxury.
An insurance agent is one example.
Taxi and Uber drivers are another class of self-employed that is not paid during the sick leaves.
For this group of people, they will be dipping into their savings to pay for their daily expenses.
Rent, utility bills and the child’s pocket money are some daily expenses that continue to be incurred when they are warded.
Moreover, you may need more than just medical bill reimbursement after getting out of the hospital.
Clutches, wheelchair rental, taxi fares are some expenses that may not be claimable but are required anyway.
You may not be able to claim much from a short hospital stay but a few hundred dollars can help immensely in times like this.
The biggest benefit of hospital cash is that it is payable, regardless of what other policies you have.
You can either choose your employee benefits insurance or your Shield plan to pay for your hospital bill but not both.
But you can always depend on your hospital cash plan to pay you on top of whatever other coverage you may have.
Where can I get this benefit?
If you have gone through the dark old days of telemarketing before DNC registry, you may recall that there used to be some pesky foreign accented voices always calling you to get some hospital plan that pays you cash.
Those are indeed hospital cash insurance.
Hospital cash policies are available as a standalone.
They are sold by both insurance companies and banks due to the simple contract terms and relatively low cost.
Apart from that, you may stand to enjoy hospital cash benefit when you get a Personal Accident (PA) plan.
Therefore, please relook your PA policy if you already have one.
You may be able to claim for some monetary relief for your recent hospital stay.
It comes to our attention that certain riders to Integrated Plans carry hospital cash features.
That is when you select the ward class that is lower than what you are entitled to.
To illustrate the point, if you are on an A-Ward Shield plan and you choose to stay in B-Ward instead, the insurer rewards your efforts to mitigate losses with this benefit.
Not a killer feature.
But it is something that you do not want to miss out on.
What are excluded?
Pre-Existing Conditions are usually excluded in most insurance contracts.
If you are hospitalised for an ailment that you already had before getting insurance, this hospital cash benefit shall not be activated.
That is why you should always have yourself covered before you have any red flags on your health.
It does not cover for pregnancy either.
Insurance does not cater to expected events.
And having a baby from your tryst is very much expected!
While it is not technically an exclusion, it is important for you to know that there is a waiting period on your hospital cash insurance.
This is the time frame whereby you may be hospitalised but you are not entitled to make a claim.
The waiting period is usually 30 days after the commencement of your policy.
There may be more terms and conditions that are unique to your insurance plans.
But the above-mentioned ones are the common traits of a hospital cash policy.
You may want to study the finer prints to understand what you are buying.
All wrapped up
Hospital cash is not an insurance that is on top priority.
It is the fries to your steak, the icing on your cake, and the paper wrapping on your Christmas gift.
Not essential but things look, taste and feel a tad better with it.
You have to look out for other insurance needs before considering hospital cash plan.
Getting an Integrated Plan or Critical Illness policy should come first.
If you are not sure which to prioritise, let our Discovery Robo-advisor take you through the process.
All of us hope to never be hospitalised.
But accidents and illnesses strike even when we are well prepared.
Thanks to hospital cash insurance, you can rest a little easier, knowing that you are earning some free cash at the same time.
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