Accidental Death/Hospital Cash Plans

Michael's Insurance Solutions

How does Final Expense / Burial insurance work?

Michael's Insurance Solutions

Burial insurance covers the cost of your funeral and/or cremation expenses after you pass away. It can also be used at the beneficiary’s discretion to pay off debts including any medical bills, mortgage loans, or credit card bills. Similar to burial insurance, preneed funeral insurance covers any funeral expenses, but is usually paid directly to a funeral home rather than any family members.

This type of policy pays immediately, it can cover the cost to spouse or family members while waiting on the settlement of the larger life policies you may own. Final Expense policies are designed to cover the immediate costs and take the financial burden off spouse and family members.

If the cost of premiums is a concern, you may want to look at coverage that is designed for low cost, while still providing a death benefit that may be sufficient to cover the final expenses your family will face after you're gone. A death benefit can also pay for other stressful obligations like hospital and doctor bills, as well as estate settlement costs.

What is Hospital Daily Cash Insurance plan?

A hospital cash plan pays you a specific amount for each day you are hospitalized
Hospital daily cash insurance plan can be useful in the following ways:

  • 1 To cover ancillary costs (medical and non-medical) that are not covered under health insurance plan
  • 2 To provide for loss of income during hospitalization

Second point may not apply to salaried professionals. Typically, you get paid medical leaves when you undergo hospitalization. Hence, there is no loss of income. For a self-employed person, hospitalization may result in loss of income.

Hospital Daily Cash is not an indemnity plan. It is a defined benefit plan. The payment from insurance company is not linked to your treatment expense. Moreover, any claim under this benefit does not reduce your Sum Insured (if you have purchase as rider or the benefit is part of base plan). This is explained with the help of an example later in the description.

Hospitalization insurance is a health insurance policy that covers payments for hospital stays, outpatient medical treatment, surgery, or any hospital-related activity that involves the insured's health. This coverage is part of the health plan for government workers in the United States. Hospitalization insurance is also called hospital cash plan or hospital indemnity insurance. Would you like to have this benefit too.

Hospital cash insurance can help pay deductible, co-pays and items that are not covered by your health insurance plan.

Why hospital cash insurance? One example is if you have a high deductible health insurance policy to save on monthly premium payments that has a high out of pocket deductible to meet before the full insurance kicks in. If you end up in the hospital unexpectedly (when is it expected) due to an accident, illness or injury your hospital cash plan could pick up the out of pocket cost for less than the cost of the high premium on a low deductible health insurance policy. Hospital cash insurance can a lot of times save you money in the long vs. premiums and provide better coverage of your out of pocket costs. Need more info contact us today.