What is hospital cash insurance?

Hospital cash insurance provides a payout for each day you’re hospitalised. This is a fixed payout, the amount of which can vary based on the amount of coverage purchased.

This is an important way to complement your existing health insurance. For example: A health insurance plan may require copayment - this is a portion of the bill you need to pay before your insurer covers the rest. So, if your total hospital bill is $7,000, and your copayment is five per cent, then you would need to pay $350.

If you have hospital cash insurance, it’s possible to use it for the copayment (e.g., even if you get just $50 per day, the seven days’ stay in the hospital will be enough to cover this copayment.

Besides copayment, hospital cash can be used to pay for other costs not covered by your health insurance, such as:

●      Transportation costs to and from the hospital

●      Buying medication or equipment that doesn’t come under the hospital bill, such as a walking stick, knee brace, or medicated oils

●      Offsetting the cost of post-hospitalisation treatment (e.g., you may need to come back for physiotherapy or follow-ups with the doctors after you’re discharged, which can result in transport costs)

●      Covering costs related to personal comfort, such as your domestic helper’s transport costs if they visit to bring you food, accompany you, etc.

●      Providing for other resulting damages (e.g., if you were in an accident and your mobile phone was destroyed, it can offset the cost of a replacement)
 

These seem like small costs; why does it matter to retirement planning?

It’s a common fallacy to dismiss hospital cash insurance as trivial. In reality, the amount provided can become significant over time. One example of this is recurring treatment - as we get older, there could be an increased incidence of hospitalisation, and our hospital stays may be longer.

In Singapore, older people are four times more likely to be hospitalised than younger adults, and are likely to stay three times longer. Between 2019 and 2022, hospital patients are also staying 15 per cent longer on average. Over a long period, there’s a risk that extraneous costs such as constant transport to and from the hospital, paying a helper to assist, buying equipment like wheelchairs, etc. will eat into your retirement savings. Again, keep in mind that health insurance generally doesn’t pay for such costs. 

Combined with a good healthcare plan, hospital cash insurance can remove the need to use high-interest credit, or to draw more from your retirement funds than planned. As such, it is a useful component in maintaining your long term retirement strategies.

Singtel Hospital Cash Insurance can be especially useful for the semi-retired

If you’re semi-retired when older (e.g., working odd jobs, or retaining part-time employment), you may be reliant on the income to support your lifestyle. Being hospitalised means you’ll be unable to work - you cannot, for instance, drive your Private Hire Vehicle or do part-time shifts while in hospital.

In these instances, Singtel Hospital Cash Insurance can help to make up for the loss of income, on days when you cannot work. At higher tiers, such as payouts of up to $500 per day, you may even be making more than your part-time job provides. This will both supplement your income, whilst covering costs such as copayment. 

This will mitigate the need to use other savings, to cover unexpected costs. As we age, it is increasingly important to consider ways to supplement our health insurance; and hospital cash insurance is one of the simplest and most effective ways to keep costs down.

Singtel Hospital Cash Insurance can provide you with daily cash payouts of up to S$500 per day for hospitalisation due to accident or illness, up to 365 days per year. It also provides additional benefits such as a 20% higher payout during retrenchment and coverage for overseas hospitalisation*.

*Subject to relevant terms and conditions.
 

FAQ

1. How does hospital cash insurance differ from standard health insurance?

Hospital cash insurance can provide a daily pay out for each day you’re hospitalised, based on the amount of coverage purchased. This is different from standard health insurance, which is used to cover various hospital bills such as the cost of the ward, or procedures done in the hospital.

Hospital cash insurance is more versatile, as you are receiving it in cash and can use it as you deem fit.

2. Why is hospital cash insurance particularly important for older adults?

As we age, we tend to be hospitalised more often and for longer periods. Older adults are more likely to require specialised help, such as wheelchair-friendly transport, to get to and from the hospital. They may also need to be accompanied by a helper, incurring out-of-pocket costs.

For those who are semi-retired and may still need to work for supplementary income, hospital cash insurance can compensate for the loss of work hours due to hospitalisation.

3. Can hospital cash insurance cover long-term care for chronic illnesses?

Hospital cash insurance cannot, in and of itself, cover the cost of long-term care. This is the province of health insurance. However, hospital cash insurance can complement other health insurance, to further mitigate the financial costs of long-term care.

4. Are there age limits for purchasing hospital cash insurance?

Policies on age limitations vary between insurers; however, most hospital cash insurance policies can be renewed up to the age of 70*.

*Age means attained age.

5. Is hospital cash insurance affordable for retirees on a fixed income?

Hospital cash insurance can be purchased at different tiers. More expensive plans will provide higher daily payouts. However, individuals with income constraints can opt to purchase a lower tier, which may still provide significant payouts of $50 to $100 per day.

6. How does hospital cash insurance handle pre-existing conditions for seniors?

Policies can vary between insurers. Some (but not all) insurers can provide hospital cash insurance despite certain pre-existing conditions. For more information, check out Comparefirst or seek professional advice.

7. What happens to my hospital cash insurance policy if I need extended hospitalisation?

For most (not all) insurers, you will continue to get the payout if you stay for additional days in the hospital. However, do note that some insurers may have limits on the length of the stay (e.g., the payouts stop after a maximum duration of a few months), or a limit on the maximum amount that can be paid out (e.g., the payouts stop once you have received a certain amount of hospital cash). Do check the terms and conditions before buying.

8. Can my family claim my hospital cash insurance if I'm incapacitated?

Policies vary between insurers, but it’s common practice to allow a policyholder to designate beneficiaries to receive hospital cash. Where this is allowed, family members can claim the benefits on your behalf if you’re incapacitated. However, different insurers may impose different requirements on how and when the payout can be collected, so check the terms and conditions before buying*.

This policy is underwritten and distributed by Etiqa Insurance Pte. Ltd. (UEN: 201331905K) (“Etiqa”). This content is for reference only and is not a contract of insurance. Full details of the policy terms and conditions can be found in the policy contract.

You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you. It is usually detrimental to replace an existing accident and health plan with a new one. A penalty may be imposed for early plan termination and the new plan may cost more, or have less benefits at the same cost. If you choose not to seek advice, you should consider if the policy is suitable for you.

Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs. If you decide that the policy is not suitable after purchasing it, you may terminate the policy in accordance with the free-look provision, if any, and Etiqa may recover from you any expense incurred by Etiqa in underwriting the policy.

The information contained on this product advertisement is intended to be valid in Singapore only and shall not be construed as an offer to sell or solicitation to buy or provision of any insurance product outside Singapore. 

This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Etiqa or visit the General Insurance Association (GIA) or SDIC websites (www.gia.org.sg or www.sdic.org.sg). 

This advertisement has not been reviewed by the Monetary Authority of Singapore. 

Information is correct as at 10/09/2024.