HEALTH INSURANCE FOR CHRONIC ILLNESS: Get a plan with restoration benefits
Individuals are increasingly opting for health insurance policies with restoration benefits as the sum insured in a standard health plan can get exhausted in a single hospitalisation due to spiralling costs of treatment. Such a policy restores the sum insured amount once it is exhausted during a policy year and offers additional coverage for future expenses.
The benefits include extended coverage and financial protection against medical costs. It is helpful for those suffering from chronic illnesses that require long-term medical treatment. The restoration benefit works well in case of a family floater plan as the entire sum insured is shared by all the members in the family.
The cost of policies with restoration benefits vary based on factors such as the insurance provider, the specific plan, the sum insured, the age and health condition of the insured. Policies with restoration benefits tend to have higher premiums compared to standard health plans.
Benefits of restoration
Health insurers offer unlimited restoration benefit plans and partial exhaustion benefits. In unlimited restoration, the sum insured is replenished multiple times during the policy year, and in plans with limited restoration, a predetermined amount for restoration. Another popular feature offered is the restoration for the same illness.
However, the benefit does not work in the case of first hospitalisation. For example, in a policy with sum insured of `5 lakh with unlimited restoration, if the bills on the first hospitalisation come to Rs 10 lakh, then the policy will only cover `5 lakh which is the basic sum insured.
“One should opt for a plan that provides restoration benefits even in case of the same illness as it can be useful for critical
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