Hospital Daily Cash in Group Health Insurance
A standard group health insurance policy may cover most of the healthcare expenses but, may overlook the additional costs an employee may incur during hospitalization. For example, non-medical costs, including daily consumables, travel expenses, medicines or money to support a dependent family, etc., or costs that are not included in the policy need to be fulfilled. In such situations, a substitute or compensation for your loss is much needed. Hospital daily cash in group health insurance can fulfil this requirement.
Hospital daily cash in group health insurance pays the insured (employees) a fixed amount for a fixed number of days during their hospitalization. Typically, hospital daily cash benefit does not require bills and is paid regardless of the actual bill amount. The amount of daily hospital cash allowance is pre-determined, that is, decided at the time of purchasing the policy.
Benefits of Hospital Daily Cash in Group Health Insurance
Traditional group insurance schemes can now be topped-up with hospital daily cash benefits. Availing of this add-on cover has multiple benefits.
1. Reimbursement for additional expenses
As mentioned earlier, employer-funded group health plans may cover almost all healthcare expenses for the ones that are covered, and hospital daily cash benefits can be helpful. This daily lumpsum amount provides additional financial security to the employees and dependents.
2. Coverage above the sum insured
There may be instances where the hospital bills exceed the sum insured. In such cases, this amount can be used to pay the additional hospital expenses.
3. Preserves your No Claim Bonus
If the hospitalization bill is not too high, the employee can avoid taking benefit of the group health plan and preserve the No Claim Bonus (NCB). Simultaneously, the employee can use the cash benefit of this add-on and pay the hospital bill.
4. Tax benefits
Sec 80D allows an individual to claim a deduction for health insurance. If the premium amount is completely or partially paid by the employee, the tax benefit can be availed to that extent.
Conclusion
Employee benefits package keeps evolving, depending on the employee needs. Since group health plans are one of the most common and widely used benefits, providing hospital daily cash in group health insurance makes a lot of sense. Employers can attach it as a rider to the basic group health insurance policy to make it more need-based and proactive.
