Hospital Cash Insurance vs. Regular Health Insurance: Key Differences Explained

How to select the best insurance is usually a question of well-being and resources. Commonly, the most availed insurances are routine health insurance plans and Hospital Cash Benefits insurance. Each may provide financial support for emergency medical crises, but they impact differently. Well, here is a detailed comparison for your understanding to help you see which suits you better. 

What is Health Insurance?

By health insurance, we mean "regular" health insurance. It is used to look after our medical expenses when people get sick or injured. In this regard, hospitals, diagnostic tests, doctor’s fees, as well as medicines provided often are the items that are covered by them:

• Hospital bills
• Doctor's fees
• Medicines
• Diagnostic tests
• Surgeries

For instance, those who are hospitalised receive payment for their medical treatment through their regular health insurance. Depending on the insurance plan, this may cover even the costs of pre-hospitalisation as well as post-hospitalisation expenses like tests or follow-ups.

In many cases, the insurance company pays the hospital the money directly. This means that you will not be expected to foot all the bills at the beginning. But you may still have to pay for some of the costs incurred, for example, deductibles or those things not covered by your insurance.

What is Hospital Cash Insurance?

Hospital cash insurance is a simpler and more specific type. It keeps paying you an assured lump sum of cash for a day spent hospitalised, rather than giving you all the bothering particulars. For instance:

If; according to the fine print on your policy, you're guaranteed ?1,000 for each hospital day, then once you've completed your full five-day stint, the upfront sum received shall be ?5,000.

This cash will bypass the hospital staff completely and be paid straight to you. It's all yours to spend, whether to pay off one or two bills, travel, or even manage household budgets if you're on a disability holiday. 

It wouldn't matter how high your normal treatment comes to; you shall get the daily cash benefit as promised in your policy, irrespective of the elected hospital. 

Key Differences Between Hospital Cash Insurance and Regular Health Insurance

1. Coverage Scope:

• Regular health insurance covers a wide range of medical expenses.
• Hospital cash insurance only provides a daily cash allowance during hospitalisation.

2. Payout Method:

• Regular health insurance pays your medical bills directly to the hospital (cashless) or reimburses you.
• Hospital cash insurance gives money directly to you, no matter the actual hospital costs.

3. Flexibility:

• Regular health insurance only covers approved medical expenses.
• Hospital cash insurance can be used on anything you require.

4. Cost:

• Premiums for regular health insurance are more costly as the protection is wider.
• Hospital cash insurance is less expensive but with fewer benefits.

5. Purpose:

• Regular health insurance is primarily designed to reduce medical expenses.
• Cashless hospitalisation is aimed at providing policyholders or their families with cash to help manage non-medical expenses or loss of income because of hospitalisation.

Which One Should You Choose?

Both are aimed at certain health problems. An easy way to solve the question of "Which type of medical coverage must be taken for all health issues?" is that traditional health insurance is an absolute requirement. The fact is that it's a must-have means that it is a good financial planning device for covering those large hospital bills and for the ongoing treatment of any other health problems. A traditional health insurance plan is enough to meet medical bills with the in-patient hospital health expense part in the event of a hospital stay.

On the other hand, hospital cash insurance is one of those plans that cover the additional required things. As a result, it immensely helps those individuals especially those who are anxious about other charges aside from the medical services like the expenses of transportation and food for family members as well as their temporary absence from work. Hospital cash insurance is the best option. This is the add-on that will help you when the insurance coverage your husband has is not enough. She has health insurance, but it only covers him, so the finances are very sensitive.

Final Thoughts

With your needs and pocket, it is easier to decide whether you want hospital cash insurance or regular health insurance. You will need regular health insurance to deal with costs incurred when admitted to the hospital. Hospital cash insurance, therefore, provides more flexibility and support financially in those unpredictable times, hence making the right choice; after all, peace of mind is priceless.