Hospital Cash Benefit Rider in Life Insurance

The hospital cash rider in life insurance is expected to be the most common type of rider by 2020. The hospital cash rider in life insurance is a term that describes a rider that pays a lump-sum amount of money to the policyholder or their beneficiary if they are diagnosed with an illness or injury while hospitalized. This can help patients who need surgery, medical care, and other hospitalization-related expenses.Read More

Hospital Cash Benefit Rider in Life Insurance

Hospital Cash rider is an optional additional coverage that can be added to the life insurance policy. Hospital cash is one of the life riders which can be very helpful in difficult situations. This rider is offered by many insurance providers. It helps patients who have to pay for hospitalization-related costs out of their pocket. The idea behind this rider is to give patients a little financial relief while they are in the hospital or undergoing medical treatment.

What is Hospital Cash Rider?

Hospital Cash Rider is one of the life insurance riders that provide financial support to the life insured in case of hospitalization. In a Hospital cash rider, if the insured person has to be admitted to the hospital for treatment then a fixed amount of rider benefit will be paid to the policyholder depending on the daily expense of the hospitalization. Hospital Cash rider also provides ICU benefits and a lump sum amount in case the life insured requires surgery for the treatment.as the rider sum assured. To avail of this rider, the policyholder has to pay a certain amount of premium to the insurance company.

Hospital Cash Rider Eligibility Criteria

Parameter Eligibility
Entry Age Minimum 18 years to 65 years
Maturity Age 85 Years
Premium Based on Age, Gender, Health History
Sum Assured Rs. 1 Lac to No limit
Policy Term 5 years to 60 years
Premium Payment Term Regular Pay, Limited Pay, Single Pay
Premium Payment Mode Monthly, Quarterly, Half-yearly, Yearly

Reasons to Buy Hospital Cash Rider

The Hospital cash rider is a type of rider that provides a lump-sum payment to the policyholder in case of hospitalization. A hospital cash benefit rider is an option that is usually offered by life insurance companies. It can be purchased as part of a whole life insurance plan or term insurance plan. Some reasons to buy this option are:

  • Financial Support: If you buy a life insurance policy along with the hospital cash rider you can get ultimate financial support. Hospital cash rider provides lump sum amount to the policyholder in case of medical emergencies. Moreover, the rider offers cash for each day of hospitalization. This is the best rider when you won’t have to arrange money on your daily needs to meet the hospital expenses.
  • No need to Buy New Policy: Hospital cash rider can buy along with your existing life insurance policy that there is no need to buy a new policy to get this rider. Moreover, you will be saved from the struggle of maintaining two insurance policies and paying a high premium as compared to the hospital cash rider.
  • Lump-Sum Benefit: Hospital cash rider entitles the policyholder to a lump sum payment from the insurance company in the event of hospitalization. But the benefit would be payable only if the period of ICU hospitalization or surgery hospitalization is at least for a minimum of 48 hours. The surgical hospitalization may or may not be available under the rider as some insurance companies provide the benefit while some do not.
  • Tax Benefits: Premiums are paid towards a life insurance policy and riders qualify for hospital cash rider tax exemptions. The life insured can avail of tax benefits by purchasing the hospital cash rider for up to Rs. 1.5 Lacs under Section 80C of the Income Tax Act, 1961.
  • Get Peace of Mind: In the case of your hospitalization, your family may face financial difficulties. If you take a life insurance policy with a hospital cash rider you will get peace of mind. You or your family members won’t have to stress about gathering money at the last moment to take care of the hospitalization expenses.  

Documents Required for Hospital Cash Rider Claims

Below is the list of documents required while reporting a claim for a Hospital Cash rider:

  • Policy Original Document
  • Duly Filled Claim Form
  • Photo ID Proof of Insured
  • Address Proof of Policyholder
  • Medical Test Reports
  • Medical Reports and Medical Certificates
  • Photo ID Proof of Nominee
  • Address Proof of Nominee
  • Bank Account Details

Exclusions of Hospital Cash Rider

Exclusions under Hospital cash rider are

  • Consumption of Alcohol/ Drug Usage
  • Self-inflicted Injuries
  • Participation in hazardous activities
  • Pre-existing medical conditions
  • Hereditary medical conditions
  • Any hospitalization outside India
  • Participation in civil commotion, riots, war

How to Buy Life Insurance with Hospital Cash Rider at PolicyBachat?

The process of buying a life insurance policy along with a hospital cash rider online has become simple with PolicyBachat. For buying a life insurance plan online please visit our website Following are steps to compare life insurance quotes online in our portal.

  • Visit the PolicyBachat Website and select the ‘Life’ tab.
  • Enter your Name, Date of Birth, and Mobile Number.
  • Click on the ‘View Plans’ button.
  • Just Answer 5 Simple Questions.
  • Select your ‘Gender’.
  • Select ‘YES’ or ‘No’ if you have Smoked or Chewed Tobacco in the last 12 months.
  • Select your ‘Annual Income’.
  • Select your ‘Education Qualification’.
  • Choose your ‘Occupation Type’.
  • Enter your ‘Email Address.
  • Then click on ‘Start Saving Money.
  • Premium Quotes of top life insurance plans will be displayed as per data entered by you and which are suits your requirement.
  • Then select the hospicare benefit add-on cover.
  • Enter the sum assured amount as per your budget.
  • Purchase the best life insurance policy using online payment.

HospiCare Benefit Rider Premium Table

Company Plan Name Premium
Aditya Birla Sun Life Aditya Birla Sun Life Digi-Sheild Plan 871/-
Bajaj Allianz Life Bajaj Allianz Life Smart Protect Goal Plan 564/-
HDFC Life HDFC Life Protect Plan 727/-
PNB MetLife PNB MetLife Mera Term Plan 525/-
Tata AIA Life TATA AIA Life Sampoorna Raksha Supreme Plan 527/-
ICICI Prudential Life ICICI Prudential Life iProtect Smart Plan 660/-
Canara HSBC OBC Life Canara HSBC OBC I Select Star 550/-

*Premiums given above are illustration purposes only* Please refer to our website for the exact premium.

How Hospital Cash Benefit Rider Work in Life Insurance?

Hospital cash riders are typically used when individuals are buying life insurance or critical illness insurance. It is important to understand how the cash benefit rider works to make sure it’s the right choice for you and your family. The hospital cash rider is a feature that allows an individual to purchase additional coverage for a specific medical expense. For example, if you want to buy additional coverage for your hospitalization, you can do so by paying an extra premium with the cash benefit rider feature.

Things to Consider before Purchasing a Hospital Cash Rider in Life Insurance

  • A policyholder can buy the hospital cash rider benefits by paying an additional premium price.
  •  Hospital cash rider does not come with a waiting period. It follows the waiting periods of the base term life insurance policy.
  • The Hospital Cash Rider can only be purchased along with the base life insurance policy and not separately.
  • There are many premium payment options are available to choose from for premium payment such as monthly, yearly, and more.
  • The rider can terminate upon the termination of the expiration of the rider term, a lapse of the base plan, and expiry of the reinstatement period.
  • The hospital cash benefit rider is not a compulsion for a life insurance policy buyer but if you add it to your base policy it will provide extra protection for you and your family. If you want to buy a hospital cash rider along with your base plan go through terms and conditions and read about it carefully.

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