Hospital Cash

A hospital cash plan is a health insurance policy. According to the policy, the policyholder is paid a lump sum for each day he or she needs treatment in a hospital. Hospital cash provides the insured with a daily cash benefit for each 24 hours spent in the hospital. Hospitalization could be due to sickness or accident.

Normally it is not a substitute for health insurance, but just a supplement to the existing health insurance covers bought individually or provided by the employer. It has to be taken with other health insurance policies.

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