Restoration benefit in health insurance: Who should buy

Health insurance policy covers you for hospitalisation up to the sum insured. If you get hospitalised during the policy year, your health plan will take care of it. But what happens if you exhaust the sum insured and cumulative bonus? In such a situation the sum insured restoration benefits will come into play.

How does it work?

Under this feature, the entire sum insured gets restored in a policy year when it gets exhausted due to hospitalisation. This is an add-on benefit that can be bought along with a health insurance policy. But some companies offer this benefit as an in-built feature in their comprehensive health policies.

Types

There are two types of restoration of sum insured options, according to the consumption, available in the market. Complete exhaustion of the sum insured will work when the entire sum insured is exhausted. On the other hand, some insurers offer partial exhaustion of the sum insured benefits which come into force in case of partial exhaustion of the sum insured.

Limitations

There are some downsides of restoration benefits in health insurance that you must know.

– The benefit is offered only for different illnesses.

– The benefit is only available for future claims, not for the first claim during the term of policy.

– Restoration benefit cannot be carried forward to the next policy year even if you do not consume it in the same policy year.

– Only one person at a time can get this benefit.

Who should opt?

According to market experts, the restoration plan is best suited for people with family floater policies. Also, people who cannot afford higher sum insured health insurance policies must look for restoration benefits.