Uncertainties and health hazards are a part of life. Although becoming sick cannot be planned for, financial planning is something that can be done. Purchasing health insurance is one method to prepare financially for unforeseen health risks.
Health insurance is becoming a must due to the steadily rising costs of healthcare in our nation and the rising incidence of ailments. People can get the much-needed financial support they require from health insurance in case of emergency.
The first concern that comes to mind when purchasing a health insurance coverage is what if it expires. One of the various services provided with the health insurance- restoration benefit, can come handy in such times.
Let us discuss it in detail.
What is restoration benefit?
Restoration benefit, as its name implies, refills or restores your sum insured if it has been depleted due to illness or hospitalization during a calendar year, together with any collected cumulative bonus.
Even if your initial coverage runs out, this benefit assists in covering the costs. There is no need to worry even if you use up the full amount insured since your insurance provider will restore additional sum insured equal to the base amount insured, which you may use in the future.
This benefit is provided under several family and individual health insurance plans. It is also available as an add-on insurance to your current policy and is sometimes referred to as the refill benefit.
What are the types of restoration benefits?
This form of restoration benefit kicks in when the total sum insured is used up. The majority of health insurance policies provide a restoration benefit in the event that the whole covered amount is used up.
For instance, a health plan with an amount insured of Rs. 10 lakhs receives a claim for Rs. 5 lakhs. You would be left with the remaining insured amount of Rs. 5 lakhs once the claim is paid. The restoration benefit will not be utilized if a second claim is filed within the same insurance year. The restoration benefit won't kick in and your sum insured won't be entirely restored until the remaining sum insured has likewise been used up.
With this alternative, the restoration bonus kicks in even if the total covered is only partially depleted. This kind of health insurance benefit should be your choice because it is more advantageous.
For instance, if you had a sum insured of 10 lakhs and filed a claim for 5 lakhs, there would be 5 lakhs left over. Nevertheless, the restoration benefit would be in effect, restoring the money covered to Rs. 10 lakhs, making it available for any subsequent claims.
A restoration benefit is one of the various add-on protections you may get to supplement the comprehensive health insurance policy you've already acquired. You can benefit from additional protection and full amount insured restoration benefits for a little fee.
Before choosing the restoration benefit, review the terms and criteria governing the restoration of the sum covered for linked and unrelated illnesses for the same policy. Check to see whether it's an add-on you may purchase with the policy and whether or not two or more family members who have the same sickness can each make a claim for the restoration benefit.