What is the Restoration Benefit?

Due to the soaring medical expenses and the constantly rising medical inflation, health insurance plans have become more essential than ever before. Sometimes even a single hospitalisation can deplete the coverage of your entire health insurance plan. So, in such a case, you may be left with no coverage for the rest of the policy year. This is when the restoration benefit comes as a saviour. Restoration benefit helps you get back to the exact policy sum insured amount for the rest of the policy year. 

Be it a family floater plan or individual health insurance, restoration benefit is generally available as an option or in-built cover insurer to insurer. For example Care Health Insurance offers unlimited restoration benefits in health insurance so you can make the most of it. Read on to learn more about the types and benefits of the restoration feature in a health plan.

What is the Restoration Benefit in Health Insurance?

Restoration benefit, also known as reinstatement benefit, is a refill feature of the basic sum insured in health insurance. It is basically an additional pool of funds that helps you get through the upcoming medical expenses in a policy year. The name itself suggests the restoration of the sum insured value in a health insurance policy. In this era of high medical inflation, exhausting your basic sum insured may not be a surprise. So, having a long-term care restoration of benefit can make a huge difference in further medical aid that you may have to receive.

How Does Restoration Benefit Work?

To understand what is the restoration of benefit clause, you need to understand how it works. 

When the original sum insured gets exhausted in a policy year, the restoration benefit becomes active and it restores the exhausted sum insured. Depending on the chosen plan, the restoration benefit may either get active after partial or complete exhaustion of the basic sum insured. The newly refilled sum insured can be used only in the same policy year and is not eligible for carrying forward to the next year.

Things You Must Know About Restoration Benefit

Here are a few highlights of a restoration benefit that you must know:

Uses of the Restoration Benefit

Restoration benefits in health insurance can be used after the basic sum insured is exhausted.   You must note that you may be able to use the restored amount for the same illness again in a policy year in a gap of 45 days. This implies that if your first claim was for a heart disease, you can use the restoration amount for a similar heart disease again after 45 days gap. However, with Care Senior plan, restoration benefit can be claimed for same person same illness without waiting for 45 days. 

Who Should Invest in the Restoration Benefit?

Anyone willing to invest can invest in the restoration benefit. Ideally, restoration in medical insurance can be most beneficial for people who have a family floater plan or someone with a low-sum insured health plan. In both cases, the chances of exhausting the original sum insured are higher.

Carrying Forward the Restoration Benefit

Unlike a no-claim bonus, the benefit restoration plan cannot be carried forward to the next policy year. The unused amount of restoration benefit is lapsed with the end of the policy tenure.

Unlimited Restoration in Health Insurance

Yes, you read it right. With Care Health Insurance, you can enjoy unlimited restoration benefits in health insurance plans. This means, in a policy year, your sum insured will be restored each time it gets exhausted. Hence, you have strong financial support throughout the policy year. Some of our plans that offer unlimited restoration benefit are Care Supreme, Care Classic and Care Youth. 

No Sum Insured Cap

To avail of the restoration benefit, you don't need a high-sum insured health plan. There is no cap on the minimum or maximum sum insured in a health plan insurance to be eligible for the reinstatement benefit. So, anyone willing to purchase the additional cover of the restoration benefits can do so.

To Conclude

Restoration benefits can be a game changer in cases where the sum insured is exhausted, and further medical treatments are lined up. Instead of exhausting your savings, it is better to invest in a reinstatement benefit that fills back your sum insured for further use

People who have a health plan with a relatively low sum insured or have a family floater plan where the chances of losing the sum insured are higher may consider investing in a restoration benefit. Not just for them, restoration benefits in medical insurance can be a crucial investment for anyone since you can never predict future health needs and emergencies. As already mentioned above, some of our health plans offer unlimited restoration benefits that help you focus on your treatment and let Care Health Insurance manage the expenses.

>> Also Read: Benefits and Coverage under Health Insurance

Disclaimers: The above information is for reference purposes only. For more details about the health insurance plans and their benefits please refer to the sales prospectus, policy terms, and conditions.