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How necessary is Restoration benefit in Health Insurance?

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21 Nov, 2020 by Kapil Banga

Hi,


How important is restoration benefit in healthcare insurance. We are family of 3 .. me (36 years), spouse (34 yrs) and 4 yr old daughter

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23 Nov, 2020
Team Beshak

Hello Kapil,


Great question.


Family floater is a shared cover used between family members. Shared cover will always have an intrinsic flaw. In case in a particular year, a certain family member uses up the entire cover, the family members can be exposed without a cover for the remaining part of the year. Restore helps solve for this problem by reinstating the cover for the remaining part of the year. This is particularly useful when the cover is relatively low - if not today, when healthcare inflation catches up.


Restoration benefit generally reinstates the entire or partial sum insured of the policy in case of the following:

  1. The entire sum insured including the no claim bonus you have accumulated is exhausted in a policy year.
  2. There is a new claim unrelated to the previous claim. Either it's a different disease/injury or a different family member.


Very few insurance companies have even relaxed point 2 completely.


Hope this helps


Team Beshak

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