Medical emergencies come unannounced, and while medical insurance plans provide a financial cushion, certain expenses often go beyond what regular policies cover. This is where the Daily Cash Benefit in health insurance becomes valuable. It helps policyholders manage non-medical costs, such as transportation, food, and other incidental expenses, ensuring they don’t face additional financial stress during hospitalisation.
If you’re exploring the best health insurance in India, understanding the Daily Cash Benefit feature can help you make an informed decision. This article breaks down everything you need to know about it, how it works, and what to consider before selecting a policy.
What is Daily Cash Benefit in Health Insurance?
The Daily Cash Benefit, also known as Hospital Cash Benefit, is a fixed amount paid daily during hospitalisation. Unlike other coverage that reimburses actual expenses, this is a lump sum that you can use for any out-of-pocket costs.
For example, if your insurance policy offers ₹2,000 per day as a Daily Cash Benefit and you’re hospitalised for five days, you’ll receive ₹10,000, regardless of the actual medical expenses. This amount can be used for non-medical expenses like:
Attendant’s food and stay
Commuting costs for family members
Medicines or medical supplies not covered under the insurance
Loss of income due to hospitalisation
This feature is particularly beneficial for people seeking health insurance with OPD cover, as it ensures they can handle both inpatient and outpatient expenses without financial strain.
How Does Daily Cash Benefit Work?
Here's how the Daily Cash Benefit works and what you need to know before making a claim:
Pre-defined Daily Payout – The insurer offers a fixed payout amount per day of hospitalisation, which varies based on the plan.
Hospitalisation Duration Requirement – Most insurance providers require hospitalisation for at least 24 hours to avail of this benefit.
Maximum Payout Limit – Policies have a cap on the maximum number of days for which Daily Cash Benefit is payable, such as 30 or 60 days per policy year.
Claim Process – Policyholders must submit proof of hospitalisation to claim the benefit, and the amount is disbursed as per the policy terms.
This feature is a great add-on to medical insurance plans, helping policyholders manage unplanned expenses without financial burden.
Why Should You Consider Daily Cash Benefit in Your Health Insurance?
Here are some key reasons why opting for a Daily Cash Benefit in your health insurance can be a smart financial decision:
1. Covers Non-Medical Expenses
Even the best health insurance company in India may not cover every expense incurred during hospitalisation. The Daily Cash Benefit helps bridge this gap by covering costs like transportation, meals, and other essential out-of-pocket expenses.
2. Acts as an Income Replacement
If you’re the sole breadwinner, being hospitalised could mean a temporary loss of income. A Daily Cash Benefit ensures that you have financial support to manage daily expenses.
3. Enhances Your Existing Coverage
While medical insurance plans cover treatment costs, Daily Cash Benefit serves as an additional financial cushion. It can be extremely useful when combined with health insurance with OPD cover, ensuring you’re financially secure both during and after hospitalisation.
4. Flexible Usage
Unlike other health benefits, this amount is not restricted to specific medical expenses. Whether you need to pay for a caregiver, hire a nurse, or cover daily commute expenses for your family, you have complete control over how you use it.
5. No Impact on Core Insurance Benefits
Daily Cash Benefit does not affect your sum insured under the main policy. This means even if you claim this benefit, your overall health insurance planning remains unaffected, ensuring continued coverage for future medical expenses.
Things to Consider Before Choosing Daily Cash Benefit
While the feature is attractive, it’s essential to evaluate certain factors before selecting a policy with Daily Cash Benefit:
1. Daily Cash Limit
Different insurers offer different payout amounts, typically ranging from ₹500 to ₹5,000 per day. Consider your expected hospital expenses and choose a policy accordingly.
2. Maximum Claim Period
Most policies set a limit on the number of days for which this benefit can be availed. Some offer 30 days per hospitalisation, while others have an annual cap of 60 days. Ensure this aligns with your healthcare needs.
3. Additional Premium Costs
While many comprehensive plans include this feature, some require an additional premium. Compare costs across the best health insurance in India before making a decision.
4. Waiting Period & Exclusions
Like all insurance benefits, Daily Cash Benefit comes with specific waiting periods and exclusions. Pre-existing conditions, maternity-related hospitalisations, and cosmetic surgeries might not be covered. Read the policy terms carefully.
5. Hospitalisation Requirement
Most insurers require hospitalisation for at least 24 hours to activate this benefit. However, some plans extend coverage to daycare treatments, which is a crucial factor if you’re considering health insurance with OPD cover.
Who Should Opt for Daily Cash Benefit?
Daily Cash Benefit is an excellent feature for:
Freelancers & Self-Employed Individuals – Since they don’t have paid sick leaves, this benefit helps compensate for income loss.
Senior Citizens & Individuals with Chronic Illnesses – They are more prone to hospitalisations and can benefit from additional financial support.
People Without Emergency Savings – Those who lack sufficient savings for unplanned expenses can find this feature particularly useful.
Families Dependent on a Single Income – If you are the sole earner, this benefit can provide financial stability during hospitalisation.
Bottom Line
If you’re looking for a well-rounded health insurance policy, choosing one with a Daily Cash Benefit can be a smart move. It enhances your financial protection by covering incidental expenses, ensuring peace of mind during medical emergencies.
Before selecting a plan, compare different options from the best health insurance company in India, assess coverage limits, and ensure it aligns with your financial and medical needs. Adding this feature to your medical insurance plans can help you stay prepared for unexpected hospitalisation expenses.
One insurer known for offering comprehensive health coverage, including Daily Cash Benefit and health insurance with OPD cover, is Niva Bupa Insurance. Their policies are designed to provide extensive coverage, ensuring you get the best healthcare support when needed.
