Insuring your health is possibly one of the most important forms of insurance. There are many insurance options that cater for a variety of budgets, and that provide different types of coverage. It can be confusing to recognise the most important differences between all the available options, and to decide which one will best suit your needs and your pocket.
The most popular medical insurance options are hospital cash back cover and a hospital plan. They may sound like the same thing, but they are actually quite different. It’s very important to understand all the available hospital cover options. You don’t want any money worries or leave your family in a difficult financial situation, should you or a family member get injured or become ill.
A hospital cash back plan generally pays out a lump sum to the policyholder if and when you are hospitalised. If you are covered by such a policy, you’ll need to spend a predetermined amount of time in the hospital before this payment will come into effect – usually about two or three consecutive nights. An insurance company will usually pay a set amount per day of hospitalisation, for a limited period of time – up to R5 000 per day. This amount of money will depend entirely on your chosen policy. It will mostly cover the non-medical expenses that may arise during your stay in a hospital – e.g. loss of income, because you’re unable to work. This is why hospital cash back cover can be a great financial support if your family’s breadwinner ends up in hospital.
The main difference between a hospital cash back plan and a hospital plan, is that you’ll receive money directly to assist with your loss of income. A hospital plan, on the other hand, will cover a portion of your hospital bills.
What are the benefits of a hospital cash back plan?
- Minimises a loss of income as a result of your hospitalisation
- Premiums are generally more affordable than conventional medical aid
- Your whole family can be covered under the same or a similar hospital cash back plan
- Applications for hospital cash back cover are open to a wide range of ages
- In most cases, a percentage of your premiums will be paid back to you if you don’t make a claim over a set period of time – usually between 15 to 20% if no claims are made during a 3 to 5 year period.
How much does a hospital cash back plan cost?
Let’s look at a basic estimation for affordable hospital cash back plans:
| Individual cover for 30-year-old | Cover for 30-year-old and spouse | Cover for 30-year-old, spouse and children | |||
| Amount of cash cover | Monthly premium | Amount of cash cover | Monthly premium | Amount of cash cover | Monthly premium |
| R3 000 | R453 | R3 000 | R813 | R3 000 | R813 |
| R4 000 | R 534 | R4 000 | R1 002 | R4 000 | R1 002 |
| R5 000 | R 712 | R5 000 | R1 360 | R5 000 | R1 360 |
Some of the benefits that might be included:
- Cash back after every 60 premiums paid
- Maternity benefits
- Accidental death, disability and dread disease benefits.
A hospital cash back plan is not only affordable, but it also gives you peace of mind. Many people start out with hospital cash back cover, then change to another medical cover as they grow older and start a family.
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