Why Hospital Cash Plans?

    January 27, 2017

    The popularity of Hospital Cash Plans far outstrips that of medical aid schemes. The reason is attributed to the fact that hospital cash plans meet a key issue – providing additional income when most needed. It is also far more affordable than medical aid premiums. In this article, we will look at Why Hospital Cash Plans are something to consider.

    The majority of South Africans with hospital cash plans make use of public hospitals, avoiding the high cost of private medical care. While private medical care is preferred by most, the cost of medical aid is too far out of their financial means. These facts emerged during focus group discussions organised by FinMark Trust with current and potential hospital cash plan policyholders.

    Why Hospital Cash PlansThe study clearly confirmed that a major reason for choosing a hospital plan was to provide additional income while in a hospital.

    How They Use Cash Payouts:

    • Daily necessities – groceries
    • School fees
    • Water and electricity
    • Additional medical expenses


    Another factor to emerge during the study was that medical or health care expenses are not regarded as a top priority on monthly budgets. Therefore meeting that expense when necessary becomes a major financial challenge.

    Most participants in the study groups indicated that they preferred using private facilities.

    However, this is not an option for the majority of people because of the high cost of medical schemes.

    Although the majority of people prefer medical aid – perceived to offer preferential and superior treatment – it is not affordable and therefore not an option.


    HCP Attractions – Why Hospital Cash Plans

    • Affordability
    • Choice of premiums to suit disposable income
    • Cash payouts to spend as one likes
    • Peace of mind



    • At least three days in hospital to qualify for payout


    Hospital cash plans offer an effective and affordable health cover solution to low-income earners, particularly those who use public hospital facilities.

    They receive free medical services and medication or only pay a nominal fee for hospitalisation based on income earned.

    Although providing for medical expenses is not a top priority, accidents can happen unexpectedly and chronic conditions such as diabetes, HIV and TB also need immediate medical attention.

    While hospitalised, a hospital cash plan can also help cover the cost of:

    • Housing
    • Rates and taxes
    • Transport
    • Funeral plans
    • Clothing
    • Furniture
    • Entertainment
    • Telephone bills/airtime


    To get a FREE hospital plan quote, complete the form on this page and click on the “Get a Quote” button

    All info was correct at time of publishing