Gen Z, don’t be broke after a hospital visit: CA shares insurance playbook that can save lakhs

With private healthcare costs climbing rapidly in India, a sudden medical emergency can leave even young earners staring at massive bills. A single hospitalisation for a critical illness in a reputed private hospital can touch ₹15 lakh or more. But experts say the financial shock doesn’t always end at the hospital gates.

“People only realise after discharge that the real expenses start then — cabs, food for family, parking, missed workdays… it all adds up fast,” notes CA Nitin Kaushik. For Gen Z, who value financial independence, the answer lies in two underrated insurance covers most people ignore — Hospicash and Day Care Insurance.

Hospicash 

Think of Hospicash as a “hospital allowance” that pays you a fixed amount — typically ₹2,000 to ₹3,000 — for every 24 hours you’re admitted. The payout is entirely flexible, meaning you can spend it on lost wages, transport, meals for accompanying family members, or any other needs during your hospital stay.

Eligibility basics

Hospitalisation must last at least 24 hours (some plans also cover certain short-stay procedures).

Waiting periods apply — usually 30 days for illnesses, with accidents often covered immediately.

The reason for hospitalisation must be valid (excludes self-inflicted injuries or cosmetic treatments).

In a country where more than 50% of healthcare costs are paid out-of-pocket, Hospicash acts as a vital buffer, softening the financial blow of hospitalisation.

Day Care Insurance

Thanks to medical advances, many procedures now take just a few hours. But traditional health policies often require a minimum 24-hour hospitalisation to approve claims — leaving patients to foot the bill for shorter treatments.

Day Care Insurance bridges this gap, covering procedures such as:

Cataract surgeries

Chemotherapy sessions

Dialysis treatments

Minor laparoscopic interventions

Eligibility essentials

The procedure must be on the insurer’s approved day care list.

It should be performed in a recognised facility using anaesthesia or specialised medical equipment.

Applicable waiting periods must be completed.

Exclusions, such as cosmetic dental work, remain in force.

For freelancers and gig workers without paid sick leave, this can mean the difference between a manageable medical expense and a savings-draining bill.

Hospicash add-ons

Hospicash add-ons can cost less than a monthly streaming subscription, require no medical tests for basic coverage, and can be bought online in minutes. For a generation accustomed to instant UPI payments and app-based services, the speed and simplicity are a perfect fit.

Gen Z also tends to view insurance as a proactive financial tool rather than an emergency-only measure. Frequent travellers can opt for higher Hospicash limits, while those with regular medical needs can ensure day care coverage is included.

Globally, daily cash insurance is growing at about 12% annually, and India’s market is expected to double within five years. Rising medical inflation and a growing young workforce are driving demand. Insurers are responding with instant claim approvals, custom payouts, and app-based processes.

Things to note

Check whether your employer’s health policy includes these covers — many don’t. Be realistic about your needs: Will Rs 2,000/day cover your rent, EMIs, and basic expenses during a hospital stay? Review waiting periods and exclusions to avoid unpleasant surprises.

The bottom line: Hidden costs after hospitalisation and uncovered bills for short treatments can derail your finances. Hospicash and Day Care Insurance offer affordable, targeted protection — keeping both your health and your hard-earned savings intact.