What Is Restoration Benefit In Health Insurance?

Restoration benefit refers to a gift whereby the insurance provider restores the initial sum insured once all funds have been used to treat the illnesses. Because of these benefits of health insurance, even if you use the entire amount insured, you need not worry because your insurance company will be able to restore the total amount so that you can use it in the future.*

Let’s use an example to understand this better: Mr. Rahul has a Rs. 4 lakhs health insurance policy with restoration benefits. He had to have heart surgery, which used up the entire insurance payout.

A few months later, Mr. Rahul received a cancer diagnosis requiring surgery that cost around Rs. 2 lakhs. As it has reinstated the original sum insured of Rs. 4 lakhs, the insurer will pay for Mr. Rahul’s surgery, hospitalisation, and medical care. This was only possible because Mr. Rahul selected the Restoration Benefit when buying his health insurance policy.

We don’t believe in luring customers with flashy benefits. Instead, we offer genuine ones like the Restoration Benefit, which can benefit you long-term.

Why Is It Important?

Choosing this is a wise choice, making it essential and advantageous.

Always have a backup strategy, especially when it concerns your health. Like a backup plan, a restoration benefit will assist you if necessary.

The Different Restoration Benefits

Before choosing one of the two restoration options available, we advise you to review the terms of your health insurance policy carefully:

  • Complete exhaustion of the Sum Insured – Under this scenario, the benefit won’t kick in until the sum insured has been used up.*
  • Partial exhaustion of the Sum Insured – Under this option, the benefit will take effect even if the sum insured is only partially used.*

For Whom Should A Restoration Benefit Be Chosen?

  • We advise you to purchase this add-on benefit and a family floater policy to maximise your This benefit is appropriate for your family floater plan because it gives your plan real value.
  • For those unaware, family floater plans allow the cover to “float” among family members. The restoration benefit feature is helpful in such policies.
  • For instance, the total coverage will be used if your spouse becomes ill while you have a floater plan with a Sum Insured of Rs. 4 lakhs.
  • This feature would assist you in restoring your Sum Insured if another family member had to be hospitalised later in the same policy year.

Does Restoration Benefit Result In A Higher Insurance Cost?

Economic benefits also result from the restoration. However, one of the general guidelines for calculating an insurance cover’s premium is that the higher the premium, the more features the policy has. This benefit exceeds the cost of the premium. For the additional coverage, an insured person must pay an additional fee. For instance, a 34-year-old would pay slightly more than Rs 5,000 per year for a Rs 4 lakh insurance plan, while the cost for a project with a restoration benefit would be more than Rs 6,000.

*Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale

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