Medical insurance is a type of insurance where you’re paid a cash amount for each day you’re in hospital. However, you have to have been in hospital for at least three days in order to claim – so if you’re only in hospital for a day procedure, for example, you won’t be eligible for a payout. In addition, the daily allowance you’re paid out is designed to help with everyday expenses and won’t be enough to cover the whole cost of your hospital stay.