All about Restoration benefit in Health Insurance Plans

Restoration money is a service in which the insurance company restores the originally insured amount after it has been fully used to treat illness.

Even if you use the full amount of the insurance, you don’t have to worry because if you get this service, your insurance company can reimburse you for the full amount and you can use it in the future.

Why It Matters:  This is important and beneficial because if you choose this, you are making a smart decision.

A backup plan is always important in any case, especially when it comes to your health. Also, a recovery benefit is your backup plan and it will help you if necessary.

Types of Restoration Benefits:

There are two types of restoration options. We recommend that you read the fine print of your health insurance policy before deciding which of the two:

Total depletion of the insured sum – With this option, the benefit only takes effect when the entire insured sum has been depleted.

Partial depletion of the insured sum – With this option, the benefit is effective even if the insured sum is partially depleted.

Who should choose a Restoration Benefit?

 We recommend that you purchase this additional benefit when you purchase floating family insurance to get the most out of your policy. This benefit fits in with your Family Floater plan as it adds tangible value to your plan.

For those less aware, coverage “floats” between family members on family floating plans. In such policies, the profit restoration function is useful.

For example, you have a floating plan with an insured sum of Rs. 4 lakhs and your spouse gets sick and all coverage is used.

If unfortunately, another family member is hospitalized later in the same insurance year, this feature will help you in this situation by reinstating your insurance amount.

Does the Restoration benefit increase the contract premium?

The benefit of restoration is also financially beneficial. However, one of the general rules of thumb for determining your insurance coverage premium is that the more features you select for the policy, the higher the premium.

This benefit certainly extends the amount of the premium. These are additional costs borne by an insured person for additional coverage.

For example, an insurance plan of Rs 4 lakhs for a 34-year-old boy would cost a little over Rs 5000 per year, while a plan with a catering benefit would cost over Rs 6000.

When choosing the recovery benefit, keep the following points in mind:

• Recovery benefit is triggered by an unrelated condition
• This is an “additional” service that you can purchase with your insurance policy.
• This can be done with minimal additional costs when purchasing a policy.
• Restoration occurs when the sum insured or partially insured is exhausted.
• The insured sum restored cannot be carried over to the following insurance year
• The restoration allowance does not apply to the first claim
• It applies not only to the largest sum insured but also to any sum insured.
• The catering service will return the entire sum insured as soon as you have exhausted it in a single request during the term of the contract.
• Restoration services only refer to future claims.

For family floating plans, this is a worthwhile addition. When one of the members has exhausted basic coverage, the other members can continue to enjoy the coverage. If you want the maximum coverage at the lowest cost, make sure catering is added to your health insurance.