Hospital Cash Benefit Rider in Term Insurance- A Detailed Guide

Hospital Cash Benefit is an additional coverage or rider that can be included in your term insurance policy to enhance the strength of your term plan coverage. This is regarded as a helpful term insurance rider that aid the insured in times of difficulty.

Under this rider, the insured can avail a fixed amount as hospital cash rider benefit if he/she ever requires hospitalization for a treatment. With this rider in hand, the policyholder can get a fixed sum of money for each day that the person is hospitalized for a treatment.  Besides, you also get ICU benefits under this rider along with getting a good capital in case the insured needs surgery as part of the treatment under this term insurance rider.

What do you mean by a Hospital Cash Rider?

This is a significant term insurance rider that allows a fixed monetary benefit to the insured in case the person gets hospitalized due to an ailment. Under this rider the insured receives a fixed payment every day till the hospitalization process of the person continues. Further, he/she can also get ICU benefits. Moreover, if you have an individual policy, you can even seek a huge amount from the insurer for undergoing a surgical procedure during your hospitalization process. This is a highly useful rider that allows monetary stability to the insured during the time of health emergency. It also offers tax benefits under Income Tax Act, 1961.

Why is Hospital Cash Rider Important?

This is a reliable rider that adds value to your term plan. Here are some beneficial points to remember before buying this add-on cover under your term plan.

• This rider supports the insured in case there is a medical emergency by offering financial aid
• The per day cash that can be availed by the insured in the event of hospitalization, helps in meeting the expenses smoothly with the help of this rider
• The rider allows the insured to have a fixed amount of cash daily till the person is in the hospital. However, the minimum period of hospitalization should be 48 hours to avail this benefit
• The rider also provides the insured with a lump sum amount in case patient is admitted in ICU or requires a surgery. Here again, the minimum stay at the hospital should be 48 hours at least
• This rider also eliminates the need of a new policy to cover hospitalization costs and the hassle of managing two policies
• The policy also allow mental peace to the policyholder by supporting you monetarily
• Lastly, the insured is also eligible for tax benefits under Section 80D of the IT.

What is the eligibility criteria of Hospital Cash Rider?

Below are the requirements that a person needs to fulfill to include this rider under their plan:

• Min. age of entry  – 18 years
• Max. age of entry – 65 years
• Maximum Maturity age – 85 years
• Sum Assured Minimum – Equal to the sum assured of the base policy
• Sum Assured Maximum – No Max limit
• Time duration of the cover – Same like base policy cover
• Premium payment duration – Can use the same duration as the base policy
• Premium payment mode- Payment can be done as  per the mode used for base plan premium payment

8 Documents Needed for Raising Hospital Cash Rider Claims

Below are the documents required for raising Hospital Cash Rider Claims:

1. Copy of Policy Document
2. Duly Filled form of claim
3. Policyholder’s Photo ID
4. Policyholder’s Address Proof
5. Certificate of Medical Practitioner Attending the patient
6. Medical Reports
7. Photo ID of Nominee
8. Nominee Address Proof etc.

ICICI Prudential iProtect Smart Term Policy

Below are some of the Hospital Cash rider exclusions:

1. It excludes pre-existing diseases
2. The rider excludes medical conditions that are hereditary in nature
3. It excludes weight reduction treatment
4. Also excludes hospitalization out of India
5. Exclude self caused injuries and attempt to suicide
6. The plan also exclude issues caused due to drug abuse/overdose

6 Things Excluded from your Hospital Cash Rider

Here is a list of a things to take note of regarding the hospital cash rider:

1. The Hospital Cash Rider cannot be purchased alone. It can only be purchased with your base term insurance policy
2. The rider has no individual waiting period of its own but follows that of the base plan
3. It is available with a vast options of premium payment including monthly, quarterly, yearly, etc.
4. You need to pay an additional amount to avail the hospital cash rider
5. The rider expires with the expiry of term plan
6. The rider is not compulsory to buy with a term insurance policy. The policyholders are free to add the rider if they find it beneficial