Introduction
Being hospitalized may be stressful and expensive, especially if it happens out of the blue. Medical costs can easily mount up and strain a family's finances. Adding a hospital cash rider to a life insurance policy is one way to reduce this risk. A hospital cash rider is an option provided to policyholders by the ICICI Prudential Life Insurance Company.
When examining the hospital cash rider from ICICI Prudential Life Insurance, it's crucial to consider the rider's price and whether the extra cost is justified. It's also crucial to consider whether the additional protection the rider offers is actually required. To determine whether a hospital cash rider is a right choice for them, policyholders should also consider their entire insurance requirements.
One of the crucial term insurance riders is the hospital cash rider. If the life assured needs to be hospitalized for treatment, it offers a set benefit to them. The rider offers ICU advantages and a set sum for each day of hospitalization. On an individual policy, the Hospital Cash rider also offers a lump sum reward upon having surgery.
Hospital Cash Rider is the ultimate helping hand in an emergency circumstance and is highly advantageous for life assured to secure financial security. The best aspect of the rider is that it offers one a daily sum and tax advantages under the Income Tax Act of 1961.
Also, the rider's lack of a "No Claim Bonus" benefit, a maturity reward, or a death benefit should not be overlooked. The rider, though, is reasonably priced.
Benefits of hospital cash rider
- Fixed Amount Daily:
You will receive a set cash sum each day up until your hospitalization as part of the hospital cash rider. You would be eligible for this benefit if you are hospitalized for a minimum of 48 hours when the policy is in effect. It should be noted that this would be a predetermined, fixed sum rather than one based on the actual costs incurred throughout the hospitalization stay.
2. Lump Sum Amount:
If you need to be hospitalized for surgery or for intensive care unit (ICU) treatment, the rider will give you a lump sum payment. The benefit would only be paid out if the patient spent at least 48 hours in an ICU or was hospitalized following a medically essential surgical procedure. The surgical hospitalization may or may not be covered by the rider, depending on which insurance companies offer the benefit.
3. Tax Benefits:
The Income Tax Act of 1961's Section 80D will allow you to receive tax benefits. Over and above your tax advantages under the base term insurance policy, the rider benefits would apply. It simply implies that you will receive improved tax benefits in accordance with the current tax laws.
How does it work?
It's crucial to comprehend how a hospital cash rider functions and how it might help you and your family when considering including one in your life insurance policy. The hospital cash rider offers a daily cash benefit for each day of hospitalization. This benefit can be used to pay for out-of-pocket expenses like medication, transportation, and other out-of-pocket costs, as well as lost wages while recovering. When you purchase the rider, the amount of the hospital cash benefit is set in the rider and is often a fixed sum. The benefit sum is typically expressed as a percentage of the basic policy's death benefit sum.
It's also crucial to remember that the hospital cash rider excludes pre-existing conditions from coverage and does not pay for hospitalizations brought on by such conditions. The purpose of the rider is to give policyholders an extra measure of security in the event of an unplanned hospital stay.
Conclusion
In conclusion, policyholders can purchase the hospital cash rider from ICICI Prudential Life Insurance, which offers extra protection in the event of hospitalization. It's crucial to thoroughly consider the rider's price and whether the additional cost is justified. Policyholders should also consider their insurance requirements to determine whether a hospital cash rider is a right choice.
