Hospital Cash Back Plans vs. Traditional Hospital Plans

We are all aware that life does not come with guarantees. The onset of sudden illnesses requiring hospitalisation, urgent surgeries, and accidents occur with no warning. Being emotionally prepared for a mischance may not be possible.

However, being financially prepared for it can cushion the blow to you and your dependents. The aim of any hospital plan or hospital cash back plans is to help you with these emergencies.

Traditional hospital plans and cash back plans are insurances that cover you through a period of hospitalisation. However, these plans are very different from each other in every other way.

Hospital plans aid you in obtaining the best medical services from a private hospital at affordable rates. They can cover you for a long stay in the hospital to providing for consultants fee and medication.

While traditional hospital plans facilitate your healthcare needs in hospital, hospital cash back plans help you with loss of income. Hospital cash back plans are a unique source of security for day to day expenditures of your family. They provide your family with your regular contribution to family funds.

Merits and limitations of hospital cash back plans

One of the major benefits of hospital cash back plans is that your household still runs the way it’s supposed to without disruption caused by hospitalisation. You can suit the needs of your household to the plan you subscribe to.

The premiums for such plans are affordable. You can enlist your family into the scheme and receive benefits when they are hospitalised too. These plans can be obtained from 18 years of age until a maximum age of 59 years.

Moreover, you still get 15-20{e318e999656343674301cd1bc45df2ab79b4162c60bc859322898b68f639f7a8} cash back on your premiums if you do not utilise the policy in 3-5 years. Many schemes allow for cash back in 5 years irrespective of whether you claimed benefits or not.

Hospital cash back plans, however, are an add-on feature and would not work well alone. They are not a medical aid. In case of hospitalisation, you would still need a medical aid and hospital plan in conjunction with cash back plans.

Merits and imitations of traditional hospital plans

Hospital plans can be standalone plans or part of a comprehensive medical aid scheme. Hospital plans cover the majority of medical care and related expenses in case of hospitalisation of an individual.

Hospital plans are the more affordable option for many healthy youngsters with fewer ailments. These plans prove to be cheaper than opting for a more costly medical aid scheme. They also afford you the benefit of the best private hospital care.

However, these plans do not include expenses that an individual incurs with day to day expenses. Though these plans are comprehensive for hospitalisation, their merit is lessened in case of outpatient and consultation expenses.

In the case of more mature members, the hospital plan alone would not be sufficient coverage for their needs. Hospital plans may also have age constraints and minimum waiting periods before they can be claimed.

In comparing the hospital cash back plans and traditional hospital plans we can see that both have merits. During hospitalisation, you would require the assistance of in-hospital facilities and specialist consultations as well as cash to pay for your daily living expenses.

But, the welfare of your family can only be achieved through the cash back insurance. You can have the benefits of both in a more comprehensive medical aid scheme if you can afford them.

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