Term Insurance assures that a person has taken cover of his life and can ensure that his life remains financially stable in the event of sudden death or critical illness. A new rider has upgraded term insurance cover with income protection feature in case of hospitalisation.

Several insurance providers are now giving ‘Hospital Cash’ feature as a rider to get the fixed income benefit in case of hospitalisation. Also known as ‘Hospi Cash’, the feature provides people to protect their income and manage the additional cost due to hospitalisation.

“The insurer pays a fixed benefit amount in case life insured gets hospitalised. The amount is given each day from the first day of hospitalisation, but a minimum hospitalisation of 24 hours is mandatory. This covers for your income loss during a hospitalisation. The rider also ensures that the family doesn’t have to think about money when it comes to the treatment of the life insured,” noted Varun Agarwal, Head of Term Insurance, Policybazaar.

What is a Hospital Cash Rider?

Hospital cash rider provides an additional cover to the policyholder which lets them to insure their income, in case of hospitalisation. According to Policybazaar, daily hospital cash riders offer a lump sum amount daily to the insured during the hospitalisation for a specific period. The money earned on a daily basis with the rider can compensate the additional expenses that term insurance or even the existing health insurance doesn’t cover.

As of now, only Tata AIA and ABSLI are offering the rider with term insurance plan. As per the Policybazaar data, hospital care rider can cost additional Rs 5,000-Rs 10,000 on term insurance premium and provide a cover of Rs 10 lakh.

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ABSLI Term Insurance With Hospi-Cash Rider

Profile: 30 yr old male Non-Smoker, Yearly Mode
ABSLI	Super Term Plan		Remark
Premium	Base Plan (2Cr)	18575
	Hospicare Premium (10Lac)	5964	at PT 30yr
Daily cash benefit	Min	600
	Max	6000	The rider sum assured will be 250 times this daily cash benefit amount
Rider SA	Min	1.5 Lac
	Max	15 Lac subject to maximum of 100% sum assured of the base plan
ICU Benefit	Additional 100% daily cash benefit, up to 15 days/year, paid irrespective of expenses
Recuperating Benefit	Recuperation Benefit: 3x daily cash benefit (once per year) for 7+ days of continuous hospitalization for the same condition, paid irrespective of hospital changes, provided the insured survives
You can claim 100 times the chosen daily cash benefit amount in one policy year and 250 times the chosen daily cash benefit amount in the entire policy term.

Tata AIA Term Insurance With Hospi-Cash Rider

Profile: 30 yr old male Non-Smoker, Yearly Mode
TATA	Sampoorna Raksha Promise		Remark
Premium	Base Plan (2Cr)	15622
	Hospicare Premium (10Lac)	2896	at PT 5 yr
Hospital Cash benefit	0.5% per day paid in case of hospitalization for medically necessary treatment of any illness or injury for a minimum period of 24 hours	Maximum 30 days per policy year, subject to a maximum of 200 days during the entire policy term of the contract
Rider SA	Min	1 Lac
	Max	40 Lac
ICU benefit^	Additional 0.5% per day is paid for each day of stay in the Intensive Care Unit (ICU)	Max 15 days per policy year
Recuperation benefit	1.5% of the HospiCare benefit Insured Amount will be payable in case of continuous hospitalization in one or more hospitals for 7 or more days (excluding the time taken for transit between hospitals) for the same injury or disease.	This benefit will be paid once in a policy year