What Is A Restoration Benefit in Health Insurance?
With the skyrocketing costs of healthcare and the increasing health hazards especially during this pandemic, you may wonder what happens when your sum insured is exhausted. It is a very natural and realistic worry, especially for those of us who have family floater plans. Additionally, it is equally important to remain insured in current times. So what is the solution? Restoration benefits are possibly what can help solve this dilemma. But what is it and how does it work? Read this article to find out.
What is a Restoration Benefit?
A restoration benefit comes in handy when the sum insured of a health insurance policy is exhausted by the policyholder. As the name suggests the benefit replenishes the sum insured. It can come in handy in situations where for example, where you have a medical emergency that ends up costing 5 lakhs which is also your sum insured. If you require additional medical care some other time in the year your insurance sum has been exhausted. However, with the restoration benefit, you replenish this sum and it is available for your use when required.
What Should You Know About Restoration Benefits?
The following are some points you should keep in mind when purchasing a restoration benefit:
- Tenure Basis: The restoration benefit purchased is only valid for that year and cannot be carried forward in the following year when the policy is renewed. Moreover, as the benefit replenishes it cannot be used as the first claim in a year.
- The difference in Application: The benefit works differently for different applications. For example, if you use up your entire insured sum for a particular ailment and then purchase the restoration benefit, there will need to be a gap of a month or so before you can claim it for the same ailment. However, if the ailments are unrelated, such as a heart issue and a fracture the benefit can be used immediately.
- Family Floater Plan: In case you choose to purchase the restoration benefit for a family floater plan the benefit will be available for use on a floater basis.
- Limits of Application: This health insurance cannot be put to use when you are in a location beyond the boundaries of India. Hence, it does not apply if the mishap occurs outside India.
Takeaway
To conclude, with a restoration benefit you can replenish your sum insured with the same year when it is exhausted. However, this benefit does not carry over to the following year. Additionally, it works only within India and requires a gap of approximately a month or two before it can be used for the same ailment again. If you want to purchase insurance, doing it online is the best option. You can now compare different health insurance companies, the plans they offer, their network of cashless mediclaim hospitals, and renew an existing policy all within a few minutes. Make sure to check out the Critical Illness Insurance plans, The Aarogya Sanjeevani Plan, and COVID -19 Insurance. To read similar articles on health insurance click here.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
