How Restoration Benefits Work?
Restoration benefit is a common term that occurs in a health insurance . This is a benefit that helps the insured to pay for repetitive hospitalizations without burning a hole in his savings. By adopting a health insurance plan with restoration benefits, the insurer will be able to restore the funds that have been replenished with the previous hospitalization, to stay protected in the future as well. This is of absolute importance in a family floater plan, where the insured sum is common for all family members. If the sum insured is used by one member of the family, the restoration key will help to restore the money in the insurance account to pay for future hospitalizations. This benefit is common for both individual Health insurance plans and family floater policies.
How Does Restoration Benefit Work?
This is an Add-on benefit that is bought with the insurance policy at a nominal cost. Restoration benefit helps to restore the total amount insured if it is exhausted in a single claim within the policy year. This additional feature will reflect on the premium amount and is an add-on cost to be borne by the insured person. This can be a valuable add-on for family floater plans. It is available only in India and cannot be claimed for treatments adopted in other countries.
Types of Restoration Benefits
The restoration benefit in medical insurance serves as an expert back up plan to pay for future hospital bills when the need arises. There are two types of restoration options available.
- Complete Exhaustion of the Insured Sum – The benefit will be applied only when the sum insured is exhausted completely.
- Partial Exhaustion – The benefit will be applied upon partial exhaustion of the insured sum.
Conditions Applicable to Restoration Benefit
Many health insurance plans offer restoration benefits for the insurers. But before choosing an ideal plan, it is important to understand the strings attached to it, to understand and apply it better.
1. Restoration Benefit is Only for Different Illnesses
The reinstatement benefit is applicable only for claims of a different illness in the future and should not be in any way related to the current illness, within the same policy year.
2. Restoration Does Not Apply for the First Claim
The restoration benefit is not available for the first claim in a policy year. However, few plans offer this benefit for the first claim as well but limit them for hospitalization related to accidents.
3. Restoration Benefit is Not Carried Forward
If the sum insured is restored in the current policy year, then the restored amount cannot be carried over to the next policy year and should be consumed within the same year of restoration.
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Final Words
Restoration benefit renders insurers absolute peace of mind as they don’t have to worry about exhausting the sum insured to pay for future medical bills. It is a very useful add on to be bought with health insurance plans.
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.
