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Understanding reinstatement of sum insured in health insurance

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Have you ever heard your insurance provider tell you that you get the ‘reinstatement of sum insured’ benefit with your health insurance policy? Ever wondered what this benefit entailed? If so, you have come to the right place! In this article, we will take you through all you need to know about this helpful feature of health insurance. Let’s get started –

What is the reinstatement benefit?

With the reinstatement of sum insured benefit, your health insurance cover limit bounces back to its full value even after you have exhausted the amount in a claim. This benefit is provided at a slight added cost to you, the policyholder. This added cost is definitely worth paying for we never know when ill health can strike twice or even several times within a given policy year. For a family floater plan that covers several members of a household, the restoration benefit can be said to be almost indispensable since there is a higher likelihood of claims being made each year.

A few things to know about the restoration benefit

Here are a few key pointers that you should keep in mind about the restoration benefit in health insurance:

  • This benefit may be purchased for restoration upon partial exhaustion of sum insured or complete exhaustion
  • The restored amount on your policy cannot be carried over once the current policy year expires
  • This benefit will not come into effect for your initial claim in the policy year, but rather for subsequent claims
  • Insurers might only offer this benefit on health insurance plans with a certain sum insured (generally plans that have coverage of Rs 3 lakhs or more)

For a complete list of the terms and conditions of the restoration benefit, do speak with your health insurance provider.

What are the advantages of having the restoration benefit?

The restoration benefit is an extremely useful feature of health insurance. Illnesses are unpredictable and no matter how much you try to stay fit, you may end up requiring medical treatment at some point. Having the assurance that your exhausted cover limit gets replenished truly gives you peace of mind. This benefit is even more visible with a family floater plan. You have the assurance that even if one family member makes a claim, the sum insured with get reinstated for another family member to make a claim, if required. This helps you avoid taking out coverage for an extremely large sum insured with a premium that would be much heavier on your pocket. You can pay the nominal cost for the reinstatement add-on and breathe easy!

In conclusion

We hope that this article helped you gain an understanding of the reinstatement benefit of health insurance. Do remember to always keep your coverage active each year. If you have not already bought health insurance, you can get your coverage easily online. Simply search for ‘insurance health policy’ or health insurance and compare the quotes between the options that appear.

Take care, stay safe.

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