What is Hospital Cash Insurance? Key benefits & daily allowance comparison in different plans
What is Hospital Cash Insurance?
“Hospital Cash” refers to the cash benefit provided by the insurance company based on the number of days the insured is hospitalized for treatment. This cash compensation may be greater or less than the actual medical expenses.
If you are insured for $2,000 per day in hospital cash benefit, you can receive $2,000 for 1 day of hospitalization and a total of $10,000 for 5 days during the coverage period. Many plans also offer double cash benefits in special circumstances, such as admission to an intensive care unit , confirmed diagnosis of cancer , or contracting specific infectious diseases, providing larger compensation to the insured.
Additionally, hospital cash benefits generally do not conflict with your other medical coverage plans, meaning you can be covered by hospital cash and other health insurance , or Voluntary Health Insurance Scheme (VHIS) at the same time.
- *The above plan information is for reference only.
Based on market data for hospital cash plans, almost all plans only accept claims for “medically necessary hospitalization” . Additionally, congenital diseases and pre-existing conditions known before policy inception are not eligible for claims .
Some plans explicitly exclude coverage for hospitalizations due to injuries or illnesses from aviation services, professional sports, or high-risk activities . Therefore, before purchasing, be sure to understand the terms and conditions of the plan to confirm your eligibility for coverage.
Benefits of Hospital Cash Insurance
Hospital cash can provide you with (1) income protection / financial support during hospitalization , and (2) you can also use this money to pay for medical expenses .
Income Protection
Hospital cash insurance is particularly suitable for self-employed individuals, daily wage workers, casual workers , such as taxi drivers, hairstylists, construction workers, part-timers, or contract workers who “stop working, stop earning.” If income is lost due to inability to work during hospitalization, hospital cash insurance can serve as “income protection.”
The insured won’t have to refuse a doctor’s recommendation for hospital observation due to concerns about income.
Supplement Medical Expenses
Besides self-employed individuals, others can also purchase hospital cash insurance .
Even if the insured can obtain reimbursement for actual medical expenses through health insurance , it may not cover all expenses, as many plans have claim limits, deductibles , or only reimburse a certain percentage.
In such cases, hospital cash can complement “reimbursement-based” health insurance by supplementing medical expenses or filling gaps in coverage. Of course, if the health insurance fully reimburses treatment costs, the insured can treat the hospital cash as a subsidy for living expenses.
Compare Popular Hospital Cash Insurance Plans (Online Application)
| Hospital Cash Plan | 30-Year-Old Male
Annual Premium |
30-Year-Old Female
Annual Premium |
Daily Hospital Cash
Income Compensation |
Per Illness/Injury
Maximum Compensation Days |
| Company W
Plan 3 |
$8,846 | $8,757 | $900 | 730 Days |
| Company HL
Plan 2 |
$1,922 | $1,922 | $1,200 | 730 Days
Overseas Hospitalization: 30 Days |
| Company X
Premium |
$1,059 | $1,357 | $1,000 | 1,000 Days |
| Company M
Plan 3 |
$1,101 | $1,101 | $900 | 750 Days
Hospitalization in Mainland China: 30 Days |
| Company B
Plan 1 |
$1,488 | $1,488 | $1,000 | 1,000 Days |
| Company C
Plan 2 |
$8,928 | $8,928 | $900 | 1,000 Days
Outside Hong Kong: 30 Days |
- 1The premiums listed above have been rounded to the nearest integer
- 2The above information was last updated on August 27, 2024
Key Points for Hospital Cash Insurance Comparison
Compare Compensation Levels, Premiums, and Limits
When selecting hospital cash insurance, the primary consideration is to compare the daily hospital cash income compensation levels provided by different plans. Higher daily compensation amounts indicate more adequate coverage, but you should also pay attention to the premium levels and the plan’s maximum compensation days limit. Some plans offer limited compensation days for regions outside Hong Kong, so frequent travelers or those on business trips need to be aware.
Compare Additional Coverage Terms
Many hospital cash insurance plans provide double hospital cash income compensation for more serious medical conditions (such as intensive care, cancer, major organ transplants, and severe burns) for hospitalized policyholders. When comparing different plans, pay attention to the relevant conditions and the maximum days for double compensation.
In addition, some plans include additional protections, such as death compensation, accidental death compensation, and surgical expense coverage. Policyholders can compare based on their own needs while evaluating the premiums.
Compare Premium Refund Terms
Some insurance companies’ hospital cash insurance plans have premium refund mechanisms, which policyholders can compare further:
| Insurance Company | Premium Refund Details |
| Company W | Pay premiums for only 8 years to enjoy 10 years of coverage;
Regardless of whether claims have been made during the coverage period, Upon policy maturity, receive a refund equivalent to 108% of the total premiums paid |
| Company B | If no claims are made for 3 consecutive years, receive a refund of 30% of the premiums paid over those 3 years |
| Company C | Eligible for premium refund starting from the 5th policy anniversary;
At the 10th policy anniversary, receive up to 101% of the total premiums paid |
Is Hospital Cash Insurance Enough?
No!
Although hospital cash has its unique benefits, it cannot completely replace medical coverage. Because “hospital cash” only compensates a fixed amount based on the number of hospitalization days, and some have a maximum compensation days limit. Moreover, other medical expenses during hospitalization or after discharge are not within the covered scope.
If hospitalized for surgery, the expenses involved will be more, including ward and meals, operating room fees, anesthesiologist fees, miscellaneous expenses, etc., which are very likely to exceed the “hospital cash” compensation amount.
It can be seen that hospital cash may not be sufficient to cover all expenses. Therefore, it is not recommended to use it as a replacement for hospitalization medical coverage. Purchasing medical insurance at the same time can more comprehensively protect medical expenses and personal income loss.
- *Full reimbursement means no sub-limits on compensation and applies only to specified benefit items. Payable compensation is subject to the remaining deductible (if applicable), annual benefit limit, lifetime benefit limit, and other conditions including reasonable and customary charges, pre-existing conditions, designated hospital list in Mainland China, and treatment in the US. For detailed product terms and conditions, product risks, and exclusions, please refer to the relevant product website and policy.
- ^Based on a 30-year-old male insured under Bowtie Pink (Semi-Private) VHIS - $80,000 deductible.
Frequently Asked Questions
Many company medical insurance or personal medical plans include “hospitalization cash” as a compensation item. However, the insured can still purchase a separate hospitalization cash insurance based on their own needs.
Taking Bowtie VHIS as an example, although the plan does not provide hospitalization cash benefit, you can receive “day surgery cash benefit”, “total and permanent incapacity income cash benefit”, and “supplementary major medical benefit” under the following circumstances:
- Undergoing day surgery (i.e., surgery that does not require hospitalization)
Bowtie will provide you with cash benefit calculated per surgery:
| Bowtie VHIS Flexi Regular | Bowtie VHIS Flexi Plus | Bowtie Pink | |
| Cash Benefit | $800/surgery | $1,300/surgery | $1,300/surgery |
Total and Permanent Incapacity
Bowtie will provide you with income cash benefit calculated per week:
| Bowtie VHIS Flexi Regular | Bowtie VHIS Flexi Plus | Bowtie Pink | |
| Cash Benefit | $500/week
Total compensation for 52 weeks |
$800/week
Total compensation for 52 weeks |
|
Supplementary Major Medical Benefit
If the client first claims eligible medical expenses for hospitalization or day surgery from an individual/group reimbursement hospitalization insurance plan (such as company medical insurance) and receives partial or full compensation, then claims from Bowtie VHIS, Bowtie will provide you with cash benefit calculated per day:
| Bowtie VHIS Flexi Plus | Bowtie Pink | |
| Cash Benefit | $600/day
Maximum 90 days per policy year |
$600/day
90 days per policy year |
