Individual health issues are no longer limited to common diseases but extend to new-age unexpected health issues, for example, the sudden onset of the COVID-19 pandemic and its various variants. Based on this, individuals need to buy the right health insurance and know the extent of coverage and benefits offered.
Apart from the base coverage and features, health insurance policies come with certain additional benefits. Two such features are the restoration and recharge benefits.
Restoration benefit in health insurance is an added benefit to a policyholder wherein it restores the full or partial sum amount of the insurance claimed as soon as it is utilised. It is available for individuals and family health and life insurance policies.
In simple words, the restoration of cover in health insurance allows policyholders to focus on their health and get the best treatment possible without worrying about the exhaustion of the sum assured. It is either available inbuilt or can be added as an additional cover to your existing health insurance policy .
There are two types of restoration benefits - complete exhaustion and partial exhaustion.
In complete exhaustion, only when the entire sum amount is utilised does the insurer restore the sum amount. For example, for a lump sum amount of ₹10 lakhs, if you use 50%, i.e., ₹5 lakhs, the balance is not restored until the amount is completely exhausted.
For partial exhaustion, as soon as a percentage of the lumpsum amount is claimed, the insurer restores the total amount into the account. For example, if you use 50% of your amount of ₹10 lakhs, the insurer adds ₹10 lakhs more to your account.
Helps with better planning and peace of mind during emergencies
For policyholders with the family floater plan, the restoration of cover can be availed for all the family members within the policy plan
You cannot claim restoration benefit for the first claim
Allows for multiple restorations throughout one policy term
As it is an additional benefit, the premium amount you will be required to pay will be slightly higher
Similar to restoration benefit, recharge benefit in health insurance is another added benefit to a policyholder wherein it re-instates 100% of the sum amount back into the account for use after exhaustion.
It is a beneficial addition to your health and life insurance policies as it allows you to take advantage of your insurance more than once within the same financial year if required after the first claim. There are no subcategories under the recharge benefit.
Helps avail of quality treatment without worrying of costs
Does not have any additional types to choose from
The recharge benefit works only after the complete exhaustion of the claim
Available only once in a policy year
As it is an added benefit, the premium amount will be a little higher than the base health insurance policy
Restores partial or 100% sum amount when it is exhausted
Recharges 100% amount when the claim is exhausted
Complete exhaustion and partial exhaustion
Available as an inbuilt or add-on for individual and family health insurance
Available as an add-on for individual and family health insurance
Resets multiple times during a policy year.
Resets only once in a policy year.
Might have a maximum limit for recharge
Not all medical claims might be covered
It is applicable for one year at a time and so cannot be carried forward to the next year
Restoration and recharge benefits in health insurance provide financial assistance for medical claims more than once in a financial year when needed.
Multiple health insurance providers offer the benefits of restoration or recharge as part of their base policy. Check your eligibility and choose wisely between restoration or recharge cover for your health insurance.
Both restoration benefits and recharge benefits provide a similar kind of financial security in the case of medical emergencies for the policyholders. They allow you to cover the entire or part of the medical expenses more than once in a financial year, assuring financial assistance.
Health is an effective tool for financial planning and provides peace of mind during medical emergencies. Along with a health insurance plan, do not forget to buy life insurance for a better present and future for you and your family.