What Is The Restoration Benefit of Health Insurance?

Investing in a health insurance policy is a wise decision, and you must make this choice carefully after doing an ample amount of research. Choosing a health insurance cover for yourself and your family must depend on certain essential factors like the applicants’ age, medical history, pre-existing diseases, financial budget, coverage provided, etc. The sum assured under a health insurance cover should be selected to meet your demands at the time of an emergency. The sum assured under a plan can get exhausted due to repeated claims and thus, at the time of emergency the claim amount might not suffice your needs. 

To deal with such a situation, there exist restoration benefits under which the entire coverage of the purchased health insurance policy gets restored in case of exhaustion. This benefit can be availed on both individual and family floater plans as it is available as an add-on cover. It restores the original sum assured under your policy as soon as the current sum gets exhausted, which ensures that the policy is helpful at the time of a medical emergency. 

About Restoration Benefit 

Under the restoration benefit, the policyholder gets an option to refill the benefits of the purchased health insurance policy in case the sum assured gets exhausted. It works as a backup plan for the policyholders and ensures their financial protection against the increased costs of treatments in private hospitals. It is highly beneficial for family floater plans as the sum assured under such plans float from one member to the other and may not suffice their requirements. To shield your family and ensure them quality treatment at the hospital you must get restoration benefit added to your health insurance cover. 

Types of Restoration Benefits 

Based on the level of exhaustion of the sum assured under your health insurance policy, the restoration benefit can be classified into two major types: 

• Complete Exhaustion 

This type of restoration benefit comes into play when the entire amount of sum insured under your purchased plan gets exhausted. 

• Partial Exhaustion 

This restoration benefit can be availed even when a part of the sum assured under your purchased health insurance cover is exhausted. It is considered beneficial for the policyholders over the complete exhaustion restoration benefit.

Benefits of Having Restoration Benefit 

Let us look at the pros of including restoration benefits to your existing health insurance policy as an add-on cover: 

• Under this benefit you get an extra sum assured which increases the coverage of your health insurance policy.
• For family floater plans, it ensures that an ample amount of sum assured is provided to each and every member of the family included under the plan in case of a medical emergency.  
• Usually, you have to buy it as a top-up cover, but some insurers include it under the regular health insurance policies, which provides you extra coverage without paying an extra premium. 
• It maintains your financial stability and ensures that a sufficient amount of sum assured is available under your policy to meet your medical expenses.

Things To Consider Regarding Restoration Benefits 

Following are certain key points that should be kept in mind about the restoration benefits available under health insurance policies: 

• Restoration benefit can be availed for any amount of sum assured and not just a higher amount of sum assured. 
• It is applicable only on future claims made by the customer and not the first claim made by the policyholder. 
• The amount is restored if the sum assured is exhausted in a single claim in a policy tenure. 
• Only one person at a time under the family floater plans can avail of the restoration benefit of the health insurance policies. 
• The restored sum insured cannot be taken to the next policy tenure, if not used within the policy year of restoration. 

Conclusion 

You must carefully go through the terms and conditions of your health insurance cover to check whether restoration benefit is included or not. You can purchase restoration benefit cover separately to widen the coverage of your existing health insurance policy. It is considered highly beneficial for family floater plans as it makes sure that all the members under such plans get quality treatment.  

Must Read: How Restoration Benefits Work?

What is Restoration Benefit and How Many Times Can You File a Health Insurance Claim in India?

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.