Having cash given to us for each hospitalisation sounds great but it is just one small tile in the medical jigsaw…Medical / Hospital Income
This is a plan which provides a selected sum of money for each day of hospitalisation. It does not depend on the severity of the sickness or whether there is surgery. It is a simple cash amount paid for each day of stay in hospital as an in-patient.Financial Planning Viewpoint
From the financial planning viewpoint, medical expense policy must cover not just the basic medical but major medical expenses to prevent a financial drain on the client.
Medical costs are constantly rising and it is very important to have sufficient lifetime cover and guaranteed renewal.
Since medical expense policies are subject to indemnity (you cannot benefit more than you pay), and the policies have co-ordination of benefits (insurers share the cost), there is no advantage to taking up multiple policies, and it is important to ensure no avoidable duplication. There will be, however, some unavoidable duplication because the insurers compete with each other.