FOR EXISTING POLICY
FOR NEW POLICY
Restoration benefits in health insurance restore the total coverage amount if it is exhausted at any point during the policy period. These benefits are invaluable tools when your coverage limit has been exhausted, and you require additional financial protection.
Many policyholders are now careful about their choice of health and life insurance plans in light of the current health crisis. When you factor in the rapidly rising medical costs, there is a possibility of finishing your coverage in a single hospitalisation.
Due to this, the trend of health insurance plans offering multiple or unlimited restoration benefits has gained traction recently, with a growing number of insurers now providing such features.
This is where the concept of restoration benefits in health insurance steps in to help out. Let us understand this essential health insurance concept in detail.
What is Restoration Benefit in Health Insurance?
Restoration benefits in health insurance are designed to restore the total coverage amount if it is exhausted at any point during the policy period.
Let us take an example. Suppose you have a health insurance policy with a coverage amount of ₹5 lakhs and a restoration benefit of ₹5 lakhs. In a scenario where you are hospitalised, incurring medical expenses totalling ₹6 lakhs, your policy will cover the initial ₹5 lakhs.
Following this, restoration of the sum insured in health insurance will come into play, covering the remaining ₹1 lakh.
Now, let us assume you require hospitalisation once more for a different medical condition, and the expenses amount to ₹4 lakhs. You can use the restored coverage amount to address these expenses.
Types of Restoration Benefits
There are two types of restoration benefits:
Pre-Hospitalisation Expenses
These are the expenses that are incurred before the hospitalisation for delivery, such as doctor consultations, ultrasounds, blood tests, urine tests, medicines, etc. Most health insurance policies with maternity benefits cover these expenses up to 30 days before hospitalisation.
Hospitalisation Expenses
These are incurred during the hospitalisation for delivery, such as room rent, nursing charges, doctor fees, anaesthesia charges, operation theatre charges, medicines, etc. Insurers usually cover both normal and C-section deliveries.
Post-Hospitalisation Expenses
It includes follow-up consultations, tests, and medicines. Insurers cover them up to 60 days after hospitalisation if your health plan has maternity cover.
Newborn Baby Expenses
These expenses are for the treatment and care of the newborn baby. It includes vaccinations, immunisations, congenital disability treatment, and more. Most insurers cover these expenses for up to 90 days after childbirth.
Advantages of Choosing a Health Insurance Plan with Restoration Benefit
A health insurance policy featuring a restoration benefit offers numerous perks. These include:
- Additional Coverage: You gain an additional coverage amount within the same policy year, augmenting your protection during medical emergencies.
- Cost-Efficient Coverage: Some plans come with built-in restoration benefits, providing added coverage without requiring extra premium payments.
- Preparedness for Emergencies: The restoration benefit ensures you are well-prepared for unforeseen medical expenses, preventing financial strains during health insurance claims.
Things to Consider While Purchasing a Restoration Benefit Plan
When buying or renewing your health insurance policy, you have the option to select the restoration benefit. If it is offered as an add-on feature, you can choose to include it for an additional premium.
Here are some key features to consider before buying or renewing a restoration benefit:
- Non-Carry Forward: The reinstated coverage amount cannot be carried over to the next policy year, even if it remains unused within the current policy year.
- Complete Reinstatement: The entire coverage amount is reinstated even if it is exhausted in a single claim during the policy term.
- Applicable to Any Sum Insured: Restoration benefits apply to any specified coverage amount and are not limited to higher coverage amounts.
- Not Applicable to First Claim: Restoration benefits do not apply to the first claim made in a policy year.
Who Should Buy the Restoration Benefit Plan?
This restoration of the sum insured in health insurance is particularly advantageous for those with specific types of health insurance policies. The restoration benefit can be especially beneficial for the following groups:
- Policyholders with a Family-Floater Health Insurance plan, where the coverage amount is shared among multiple family members.
- Policyholders with a relatively low coverage amount can consider this benefit as a safeguard in the event of complete depletion, helping to reduce out-of-pocket expenses.
Conclusion
To sum up, health insurance is a must-have for anyone who wants to secure their health and finances. And if you are planning to have a baby, having a health insurance policy with maternity cover is even more essential. It will help you cover the pre and post-natal expenses and ensure a smooth and safe pregnancy journey.
So, what are you waiting for? Start looking for the best health insurance policy with pre and post-natal expenses covered within the maternity limit today, and get ready to embrace parenthood with joy and confidence.
