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Sudden hospitalization? Solution; Hospital Cash Benefit Rider

This benefit rider coupled with your life insurance will ensure that monetary issues do not bother you in event of unfortunate hospitalization for an ailment.

Apnainsurance Research Bureau

21 Dec 2007

The Hospital Cash Benefit rider comes in handy when the insured has a sudden hospitalization on his/her hands. In the event of hospitalization during the term of the life insurance policy, a daily hospital cash amount is payable to the insured if she/he is hospitalized for more than two/three days due to any injury, sickness or disease. The amount of reimbursement could be a proportion of the room charge in hospital or the eligible daily hospital cash amount, whichever is lower.

Like the critical illness rider, insurance companies often have a maximum limit for the hospital cash benefit rider and a clause that states that benefits will be paid only if hospitalization occurs after two/three months of commencement of the policy.

If this benefit is claimed along with the critical illness rider, the insurance company may no longer offer the hospital cash benefit rider to the insured and further premiums for this rider then would not be applicable.

See also:

Accidental Death Benefit Rider

Accidental Disability/Dismemberment Benefit Rider

Critical Illness Benefit Rider

Guaranteed Insurability Option Rider

Life Guardian Benefit Rider

Waiver of Premium Rider

Term Rider

FAQs on Life Insurance Basics

Life Insurance FAQs on Premiums

Life Insurance FAQs on Claims

Life Insurance FAQs on Insurance Company and Insurance Agent