Hospitalization and subsequent treatment costs are rising. A health insurance policy will not suffice, thus, prompting the need to seek additional benefits in lieu of some added premium charges. This helps fill in the gap for customers adding riders to tailor insurance policies according to their needs.
Not many people are aware of the concept of ‘riders’ that come with most insurance policies, be it life or general. Riders are essentially added benefits that you get by paying some extra money along with the premiums. By accepting to add riders, you earn extra benefits on your health insurance policies at very low charges. These riders may include maternity cover, accidental disability cover and more to your health policy.
Adding riders to health insurance
Before we proceed to understand how riders work in your favour, this World Health Day, let us understand the various types that can be added to the health insurance plan.
Maternity Cover Rider
What if you are planning to raise a family in the future and want your child delivery expenses also covered under this policy? You may then find out if your health insurance company provides maternity coverage too. Adding a maternity cover may help you cover the expenses of childbirth though some may restrict the payment to either delivery expenses or pre-delivery costs or the amount spent post-delivery of your child. However, adding this rider may not help you cover expenses on treatment and vaccinations post-delivery. Check for the waiting period before the benefits of this rider can be availed. In most cases, it is 24 months though it can be three years in some policies also.
Critical Illness Rider
Having a health insurance policy means that the insurance company pays for your hospitalization and subsequent treatment. What if you are diagnosed with a critical illness that restrains you from earning or requires you to go through rigorous treatment processes? Paying for a critical illness rider ensures that the insurance company will pay you the sum assured as per the rider benefits in the policy document as soon as you start suffering from any of the critical illnesses listed in the policy. For example, if you have bought a health insurance policy of ₹10 lakh and have paid for a critical illness rider worth ₹5 lakhs. You will be then paid ₹5 lakh in lump sum as part of the critical illness cover on being detected with any such illness.
Accidental Disability Rider
Disability due to an accident can be a cause of concern in the long run. This rider acts as a financial net in the event of an unforeseen disability due to an accident. Under this rider, the insurance company is liable to pay the amount as stipulated by the rider in the policy if the insured suffers from disability due to an accident. In this scenario, the policyholder must suffer from complete impairment due to the accident, for example, loss of eyesight or limbs or paralysis or any other anomaly that renders the insured immobile or unable to work. However, if the insured suffers from loss of one eye or one limb, he or she would be given only half of the sum assured amount.
Room Rent Waiver
Many insurance policies come with a room rent cap. This means that the insurance company limits the room rent for the insured in case of hospitalization and is not liable to pay the entire room rent amount. However, paying for this rider with this policy means that you can avail of the room of your choice during the treatment though this does not mean that the insured requests a suite or a VIP-styled room. The extra amount that you pay towards the waiver enables you to choose a room of your choice.
Hospital Cash Rider
Hospitalization means that the insured is unable to go to the office during that period. This equates to the loss of pay for the family dependent on the income of the insured. By choosing to pay towards this rider, the insured receives a cash amount equivalent to all the days he or she may have missed office due to the treatment. The amount differs across policies and is paid out to compensate for the loss of pay during hospitalization.
Paying extra towards riders may seem like a costly affair though it makes your health insurance policy more comprehensive. While it may seem like a burden on the premium payout, its effect, in the long run, explains that it is worth having considering the fragility of life in today’s times.