Restoration benefit is one of the fascinating aspects of a health insurance policy. Restoration benefit is valid only once for the policy year and it allows you to get coverage benefits after you have exhausted the coverage amount due to hospitalization. The restoration benefit in health insurance is a fantastic add-on that serves as the safety net in a medical emergency.
Types of Restoration Benefits in Health Insurance:
Restoration benefit in health insurance is a rider that helps you replenish the sum insured once in a policy term if you have used all the coverage amount during the year. There are two types of restoration benefits, and the policyholders can choose from these depending on their requirements. These include:
- Complete Exhaustion: This is the benefit you can get after fully exhausted your coverage or the sum insured amount.
- Partial Exhaustion: This is the benefit you can get after partially exhausted the coverage amount or sum insured.
Who should buy Restoration Benefit in Health Insurance Rider?
A restoration benefit can be beneficial in the case of family floater plans, but you can buy it for any health insurance policy. The restoration benefit provides a similar comprehensive coverage that is provided by the base policy. If one family member uses the base cover fully, the other family members can avail the benefits of the coverage.
The restoration benefit is affordable, but it can increase the premium by some amount. But it promises additional coverage to you and your family, which is essential if a medical emergency arises. The restoration benefit can be bought upon a base policy, and the benefit gets triggered only if the coverage of the base policy gets exhausted.
Things To know before purchasing Restoration Benefit:
- Most insurers restore the sum insured only after the coverage amount and the cumulative benefit for the policy are exhausted. But some insurers replenish the sum insured in case of partial exhaustion of the sum insured.
- Similar to a no-claim bonus, the restoration benefit cannot be carried to the next year. This means that if you do not use the benefit during the policy, the benefits cannot be availed in the next policy term. The policyholder must ensure that they can use the restoration benefit for the treatment of the disease for which the policy amount has been used previously.
- In some policies, the amount used for specific diseases like; heart attack cannot be utilized for the same disease again within the term period of the policy. But the other family members included in the family floater plan can use the restoration benefit amount for the same ailment.
- Some insurance policies have the restoration benefit in-built in them, so you do not have to pay an additional premium to get the benefits of this. The policyholder has to check whether or not the restoration benefits come inbuilt in the policy. In other health insurance policies, it is available as an add-on cover. One needs to pay extra if you want to opt for this.
Restoration benefits are significant for the policyholders if they wish to get maximum coverage at an economical price. But it is always essential to read the terms and conditions to know if the benefits are in-built or need to be bought separately. Also, while buying restoration benefits in health insurance, read the offer document carefully to understand and comprehend the inclusions and exclusions in the policy so that you do not face any issues at the time of claims.
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