Critical illness rider vs. hospital cash rider

Health insurance is a topic that most of us are familiar with. Its goal is to provide insured people with a range of medical coverage options in order to safeguard them. There are many different insurance policies to pick from, each with its own set of benefits. Basic plans, on the other hand, may not always be sufficient to cover all of a person's insurance needs. Details such as the quantity of coverage, the benefits provided, the policy's validity duration, and so on may be included. Insurance riders may be useful in this situation. These are changes to a general health insurance plan's coverage requirements. This is similar to customizing an existing insurance policy to meet the needs of a certain covered person.

Why Hospital Cash 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 sum for each day they are admitted to the hospital. It also includes a set payment if they are admitted to an Intensive Care Unit (ICU), as well as a lump sum payment if they require treatment or surgery. Individuals must be 18 years old or older to register for this ride, with a maximum age limit of 80 years old.

Advantages Of Hospital Cash Rider

• It provides an individual with a daily incentive to stay in the hospital (DHCB). If a hospitalization lasts at least 48 hours and is covered by the insurance, an insured individual receives a fixed per-day payment for each day of hospitalization.
• It includes a guaranteed payment as part of the Intensive Care Unit (ICU) and Surgical Hospitalization benefits.
• The ICU benefit is double that of DHCB, whereas the surgical benefit is five times that of DHCB for minor surgeries and twenty times that of DHCB for big procedures.
• Premiums for this rider are evident and acceptable if paid in a timely and cost-effective manner.
• An insured person can add additional family members to their plan if necessary.
• Both the rider and the basic plan premiums can be refunded to a covered person. The same is allowed under Section 80D of the 1961 Income Tax Act. The tax system's benefits are subject to change at any time.

Why Critical Illness Rider?

Only hospitalization costs may be covered by an insured person's medical claim in the event of a medical emergency. A Critical Illness Rider provides assistance with out-of-pocket expenses such as medical consultation fees, pharmaceutical costs, and so on. Ambulances, room rent, and pre- and post-hospitalization expenses can all be paid for with money from a critical illness plan. Furthermore, if a person owes any outstanding debts, such as a home loan or a car loan, the payment may assist them in meeting their EMI obligations. If the person is unable to work due to illness, the money might be used to supplement the income of the person's family. 

An individual may be forced to spend all of their hard-earned wealth if Critical Illness Rider is not available. A critical illness plan, on the other hand, provides the financial assistance that a person may require at the time while allowing them to maintain their other funds for their unique goals.

Features Of Critical Illness Rider

1. Lump-Sum Payout: If a policyholder is diagnosed with a serious illness, the insurance company offers a lump sum payment to cover all treatment costs.
2. Hassle-Free Experience: Because of the internet era, insured consumers now have a more straightforward, customer-friendly experience when purchasing, renewing, or reporting claims.
3. Monthly Income: If an insured individual is diagnosed with a serious condition, a portion of the guaranteed amount is paid out, which can be used to supplement their monthly income.
4. Coverage: The policy provides extensive coverage by covering 34 of the most common serious conditions.

Take Away

No one knows when they will be involved in an accident that will necessitate hospitalization, acute treatment, and care in today's fast-paced culture. As medical costs rise, individuals may face significant financial hardship. As a result, having riders such as Hospital Cash Rider or Critical Illness Rider is crucial. A few days of illness can result in large hospital expenditures, making it impossible for anyone to live a good life. If a rider is in place, an individual can rest confident that their loved ones will not be unable to pay for hospital bills, doctor's fees, or other expenses.

Also read - How Much Income Would You Require After Retirement?

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.