Exploring Hospicash Rider In Term Insurance

Health insurance is something that most of us are acquainted with. Its goal is to safeguard insured individuals by giving them a range of medical coverage options to choose from. There are a variety of policies to pick from, each of which is covered by its own insurance policy. Basic policies, on the other hand, may not always meet all of an individual’s insurance coverage needs. This might include things like the quantity of coverage, the benefits provided, the length of time the policy is valid, and so on.
Insurance riders can be useful in this situation. These are changes to a general health insurance plan's coverage criteria. This is similar to customizing an existing policy to meet the needs of an insured individual. Two of the most popular healthcare riders are the HospiCash Rider and the Surgical Rider. To find out more about HospiCash rider, read on.

What Is A HospiCash Rider?

A HospiCash Rider, also known as a Hospital Cash Rider, is a type of health insurance rider that pays an insured individual a certain amount for each day when they are admitted at the hospital. If they are admitted to an Intensive Care Unit, it also gives a fixed payment, as well as a lump sum payment if they require any form of surgery or an operation. This rider requires a minimum of 18 years of age and a maximum of 80 years of age limit to register for the same.

Must Read: Are Riders With Term Insurance Really Required?

Advantages Of A HospiCash Rider

Following are some of the advantages of having a HospiCash Rider -

1. It provides you with a daily incentive for hospitalisation (DHCB). It is a fixed per-day payment granted to an insured individual for each day of hospitalisation if the hospitalisation lasts at least 48 hours and is covered under the policy.
2. It includes a guaranteed amount as part of the Intensive Care Unit (ICU) and Surgical Hospitalization benefits.
3. The ICU benefit is double that of DHCB, while the surgical benefit is 5 times that of DHCB for small operations and 20 times that of DHCB for large procedures, respectively.
4. Premiums for this rider are clear and fair if collected in a timely and cost-effective way.
5. An insured individual has the option of adding new family members to the plan if necessary.
6. Tax rebates are available to an insured individual on both the rider premium and the base plan.
7. Section 80D of the Income Tax Act of 1961 qualifies for the same. Tax benefits are subject to change at any moment.

Eligibility Criteria For HospiCash Rider

Following are the eligibility qualification that an insured individual requires to add HospiCash Rider to their respective insurance policy -

• The minimum age limit is set at 18 years for an insured individual in order to secure this rider.
• The maximum age limit is set at 65 to 80 years, but at the same time it depends from company to company.

Tax Benefits Of HospiCash Rider

Following are the benefits that an insured individual is ensured under this rider -

1. The HospiCash Rider entitles an insured individual to tax-free hospital cash advantages.
2. According to medical rider rules, an insured individual is eligible for tax rebates up to Rs. 25,000.
3. A HospiCash Rider also qualifies an insured individual for significant tax rebates under Section 80 D of the Income Tax Act of India, which was enacted in 1961 and is updated as needed.

Endnotes

In today's fast-paced world, no one knows when they may get involved in an accident that will require hospitalisation, acute treatment, and care. All of this might result in a significant financial loss, as medical costs continue to rise. However, with a rider like HospiCash Rider in an insured individual’s policy, they may get benefits like cashless hospitalisation, bill reimbursement, and tax benefits, among other things. One should consider adding the HospiCash rider to their insurance since it will provide them with tax benefits at the very least.

Also Read: Why Should You Buy Income Benefit Rider?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.