The importance of health plans cannot be understated. However, during certain medical emergencies, it can be frustrating to know that your health plan won’t help you with your treatment expenses because the coverage is inadequate. This is where add-on covers come into the picture. These supplementary benefits enhance your base policy, providing broader financial protection. From critical illness riders to OPD coverage and from maternity benefits to room rent waivers, these add-ons cater to different needs. By exploring their features and benefits, you can make an informed decision about personalising your coverage.
Introduction
We buy a health insurance plan that mostly suits our budget and needs. However, we keep renewing it without updating it. On one occasion, you get admitted to the hospital knowing that your health plan will cover all the expenses. However, on the day of discharge, your claim request gets denied. Reason: Your plan does not cover critical illness. What you have missed is the benefit of add-ons. These riders can boost your basic policy into a financial lifesaver. Let’s learn more about maximising the value of add-ons in your health insurance policy.
What is an Add-on Cover in Health Insurance?
Add-on cover is an additional benefit or coverage that you purchase separately by paying an additional premium. Add-on covers, or riders, are taken to enhance the coverage of your basic health insurance policy. You can purchase them at the time of buying health insurance plan or during renewal.
According to Insurance Regulatory and Development Authority of India (IRDAI) regulations, the total premium for all add-on covers purchased under a single health insurance policy cannot exceed 30% of the original premium amount.
Types of Health Insurance Add-ons
Some popular add-on covers include:
1. Critical Illness Cover
On being diagnosed with a covered critical illness like cancer, stroke, kidney failure, etc, you will receive a lump sum amount, irrespective of the treatment costs. Suppose you have a critical illness insurance of Rs 20 lakh and the total treatment expenses come to Rs 12 lakh. When you raise a claim, the insurer will still pay you the total sum insured, i.e., Rs 20 lakh. The standard individual health insurance or family floater may not be adequate to cover the exorbitant costs of treating critical ailments. Hence, this add-on is recommended for those at risk of contracting critical illnesses.
2. Maternity Cover
All expenses related to pregnancy and childbirth will be covered. It includes pre-and-post-natal expenses, hospitalisation, vaccinations, etc. The newborn is also covered for a specific period after birth.
3. Room Rent Waiver
Most standard health insurance policies have a cap on room rent. This means if the room rent exceeds the coverage limit, you have to bear the additional expenses. With this add-on, you can either increase the limit or opt for no sub-limit on hospital room rent.
4. Hospital Daily Cash Allowance
The insurer will provide a daily cash allowance for the duration of your hospitalisation. However, you must be hospitalised for more than 24 hours to receive the benefit. The allowance will help cover miscellaneous expenses like food, conveyance, etc.
5. Out Patient Department (OPD) Cover
With this add-on, you can claim compensation related to outpatient consultations, diagnostic tests, medications, etc.
How to Maximise the Value of Add-Ons in Your Health Insurance Policy
Add-ons are optional benefits, which provide additional protection. As they come with additional costs, you must maximise the value of add-ons. Here’s how you can do it:
- Analyse your medical needs, family history, lifestyle, and potential risks to know which rider can be beneficial. For example, if you are planning to start a family, adding maternity insurance to your health insurance will be useful. If there is a family history of cancer, it is wise to opt for the critical illness rider.
- Choose add-ons wisely that align with your age and specific concerns. While maternity insurance is essential only for couples and families, the critical illness rider is ideal for senior citizens or those with a family history of critical illnesses. A young professional may not need either of the riders.
- Buy add-ons only if they help you save significant costs. For instance, if you are planning to get married or start a family in a couple of years, it makes sense to buy maternity insurance, as it will cover expenses related to pregnancy and childbirth.
- Opt for high-value add-ons like critical illness rider, hospital daily cash, or accident cover.
Why should You Purchase Add-ons?
Here are the reasons why you should purchase add-ons:
- Add-ons enhance the coverage of your base health insurance plan.
- With add-ons, you can customise your health policy based on your specific health needs.
- Add-on covers are cost-effective compared to buying one more new policy.
- As per Section 80D of the Income Tax Act, you can avail of tax deduction on the premium paid towards add-on covers.
Conclusion
To maximise the value of add-on covers in health insurance, you must carefully choose only those add-ons which are specific to your needs. They cost you extra, which, in turn, will increase the premium of your health cover. So, select wisely for total protection and peace of mind.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wording and prospectus before concluding the sales.
The post Maximising the Value of Add-Ons in Your Health Insurance Policy first appeared on WB News.
