This Guide is supplied for general information only. You should seek specific advice for your individual circumstances before acting on any suggestions made.
What
are Hospital Cash Plans?
Hospital cash plans pay a given amount of money if you are required to
stay in hospital for any of a number of given reasons. The main idea behind
these plans is to provide cover for day-to-day living expenses for yourself
or your family, or to cover additional expenses such as childcare, travelling
or accommodation costs. Some plans may also pay out up to a given limit
for certain types of medical treatment.
Cash plans will not provide cover in respect of a pre-existing illnesses.
Any money paid out as the result of a claim under a cash plan is normally
paid tax-free.
We also recommend that you contact the Department of Work and Pensions
to check if any state benefits may be effected by any money received from
this type of plan.
What
different types of plans are available?
The main differences between plans will be the level of benefit they
provide. Other differences may include:
- Differences in the time between when you first establish the policy
and the point at which you can first make a claim. This period is frequently
set at 6 months from the date you start the plan
- Setting a monetary limit over the maximum amount you may claim during
any 12-month period. Some plans place a limit on the number of items,
such as prescriptions, for which you can claim.
- Differences in the medical conditions that the insurer allows under the policy. Some insurers also only offer insurance cover if you are required to stay in hospital for specific periods of time.
What
should I think about when choosing a plan?
It is important that you decide what amount of cover required in relation
to your personal circumstances. For example, if there are any children
needing to be cared for while you are unavailable then you might opt for
a higher level of benefit than would be the case if you only had to replace
your regular income. In the latter case, you should check how long your
employer will pay your salary at full rate were you to be away from work
through illness or as the result of an accident.
You should decide whether you want to receive a lump sum, which can be
spent as you require, or whether it is better for you to receive assistance
with potential medical costs. You may already have a private medical insurance
plan that will cover medical costs and therefore a lump sum would be more
suitable for your needs. Some people use the proceeds of such a plan to
take a holiday to assist in their recuperation.
Click here to contact us
|