Health cash plan term meaning a continuous period of hospital confinement which includes an overnight stay. The policy pays a fixed amount for each ‘day’ the insured is hospitalised in defined circumstances subject to a minimum number of days, e.g. three, and a maximum number, e.g. 91 days, in any benefit year. Outpatient treatment not involving an overnight stay is covered under a separate section for up to a maximum number of days, e.g. 10, in any benefit year.

A reinstatement cover variant. The sum insured is in two parts – the declared reinstatement value of the property at inception (day one) and an added provision for inflation (between 115 per cent and 150 per cent) during the policy and reinstatement periods. An agreed percentage of 150 per cent attracts a flat rate of 15 per cent above the normal premium. Alternatively the rate is 7.5 per cent with the premium being adjustable at the end of the year. ‘Day one average’ applies the actual value at risk on ‘day one’ against the day one’ declared value rather than the value at risk at the date of reinstatement against the sum insured.