None of us have the guarantee that we will never be hospitalised. In the unfortunate incidence of disease or illness and you have to be hospitalised, how prepared are you? Yes, even the healthiest person can become victim to a disfavoured affliction needing hospital care. How does a Hospital Cash Back Plan work and what are the benefits of taking out a policy.
How does a Hospital Cash Back Plan work?
Hospital Cover is the insurance that you take out to cover yourself in the event of you being hospitalised and unable to work (receive an income). In the case of you lying in hospital, your Hospital Cash Back Plan will provide you with a cash amount of money, as per the amount that was agreed upon when you signed up with the insurer, to use for whatever reason you want to. You don’t necessarily have to use the money to cover your medical bills (which should be covered by your Medical Aid). You can use it to use it for anything you deem fit. Do note that in most cases you will be required to stay hospitalised for a minimum of 3 days before you can claim.
What are some of the benefits included in a Hospital Cover?
Depending on who you take your Hospital Cover with, you will either receive a daily amount paid to you or a cash lump-sum at the end of your hospital stay. Besides the cash that you will receive, there are a couple of other benefits that might be included on your policy.
- Hospital Cash Back Plans are cheaper than Medical Aid or Hospital Plans. Prime Meridian Direct offers a policy where you pay as little as R100 for coverage that amounts to a R4000 per day pay-out.
- Some plans may include Funeral Cover.
- Maternity benefits is included on most plans however you will not be covered if you are already pregnant when taking out a policy.
- A person living with AIDS/HIV may take out a Hospital Cash Back Plan but needs to take note of and read the terms and conditions for any exclusions.
- Cash back benefits where you receive money back for not claiming for a certain amount of time providing you have paid all your premiums. Clientèle offers 6 months’ worth of premiums back, in cash, after 60 premiums they receive from you.
How much will I be able to claim from my Hospital Cover?
The pay-out amount differs depending who you are insured with and what you are covered for. essentialMed offers up to R6 000 per day for hospitalization due to illness and and R9 000 per day for dread disease. They however pay these amounts as a lump sum at the end of your stay, after receiving all the necessary documentation. Should you be in any sort of accident they offer a lump sum payment of between R75 000 and R400 000 per incident. Permant disability will result in a payment of up to R250 000 with the essentialMed Hospital Cover.
The worry of not being able to provide for your family or not being able to pay your medical bills should be the last thing on your mind while you’re hospitalised.
Note that Hospital Cover is not to be confused with a Medical Aid or a Hospital Plan as it differs in the sense that it doesn’t cover you for any diseases or illnesses (in other words it doesn’t take care of any of your medical bills) but only provides a cash pay-out should you be hospitalised.
- Enzo Leigh Botes