Are Add-ons and Optional Features of Health Insurance Really Beneficial?

Posted on: Feb 14, 2023 | | Written by:

Are Add-ons and Optional Features of Health Insurance Really Beneficial?

Published on February 13, 2023. EST READ TIME: 4 minutes

Are Health Insurance Add-ons Really Beneficial?

You are well aware that the premiums of the health insurance policy will go up the moment you think of expanding the coverage. Therefore, buying a health insurance plan that takes care of your health needs as well as fits your budget is quite difficult. This is where add-ons in a healthcare policy come into the picture. These optional features that you can include in your policy by paying an additional premium can boost your coverage significantly. However, many policy buyers are not sure if they should buy them. Read on to learn more about these cost-effective solutions to increase the benefits of your health coverage during medical emergencies.

What are Add-Ons in Health Insurance?

Health insurance add-ons or health insurance riders are additional benefits you can buy to enhance the coverage of your base health insurance policy. In simple terms, the add-ons are not covered, by default, in your health insurance plan. They are optional, and based on your health needs, they can be added to your health insurance policy separately but at an additional premium. As per the regulations of the Insurance Regulatory and Development Authority of India (IRDAI), the total premium of all add-ons under a health insurance policy cannot be more than 30% of the premium amount of your healthcare plan. For instance, if your annual premium is INR 5,000 for a sum insured of INR 10 lakh and you opt for 5 add-ons, the additional premium for these riders cannot exceed INR 1500 (30% of 5000).

Here are some common health insurance add-ons:

• Maternity Benefit:

All expenses related to pregnancy and childbirth are covered in maternity benefit coverage. However, to claim maternity benefits, there is a waiting period of 2-4 years.So, if you are planning to have a baby in 3-4 years, you should include this add-on in your medical insurance plan. Some insurance providers cover a child’s expenses till the policy’s maturity or until the child is 3 months old.

• Critical Illness Coverage:

If you are diagnosed with a critical illness like cancer, heart stroke, etc., the insurer will provide a lumpsum amount (up to the sum insured)irrespective of the expenses incurred. Suppose you have taken a critical illness cover of INR 10 lakh and your treatment cost is INR 7 lakh, the insurer will immediately pay the lump sum compensation of INR 10 lakh. You can also buy a separate Critical Illness Insurance.

• Room Rent Waiver:

A standard healthcare plan has a room rent capping, but if you opt for this health insurance rider, you can either increase the sub-limit on room rent or opt for no sub-limit.

• Personal Accident Coverage:

If the insured meets with accidental death or suffers any disability, partial or permanent, the insurer will provide compensation. In case of death, the family will receive a lump sum compensation.

• Hospital Cash Coverage:

During your hospitalisation, your insurer will pay for all the medical expenses,but what about the non-medical expenses, such as the cost of keeping an attendant, food, etc.? With this add-on, the insurer will provide a daily cash allowance to manage all these non-treatment expenses. However, hospitalisation must be for more than 24 hours.

Why Should I Purchase Add-ons?

Here are some reasons why you should purchase health insurance add-ons:

1. The first and foremost is to enhance the coverage of your base plan.

2. You can customise your standard healthcare plan as per your medical needs. There are a number of add-ons offered by insurance companies, and you can choose the riders accordingly.

3. Financial support for specific ailments or needs which are not covered in the standard medical insurancepolicy will be covered by add-ons. For instance, a maternity benefit add-on will cover all delivery and childbirth-related expenses, which a standard healthcare plan will not cover.

4. Add-ons are cost-effective compared to buying a new policy. For instance, a standalone critical illness or standalone maternity coverage plan will cost you more than getting it added to your base policy.

5. You are eligible to avail of tax benefits under Section 80D.

Should I Purchase Every Add-On or Optional Feature?

Add-ons come with a cost, so you should invest in those which are required. For instance, if there’s a family history of critical illness like heart stroke, cancer, kidney failure, etc., or if you have been diagnosed with one, it makes sense to add critical illness coverage to your standard health insurance. The sum insured by your health insurance plan may not be enough for treating critical illnesses, and you may have to pay from your pocket. But with a critical illness add-on, you will be provided with a lumpsum amount irrespective of the treatment expenses. You can utilise the amount to pay debts, mortgages, etc. Similarly, maternity coverage is beneficial if you plan to start a family within 3-4 years. Childbirth can cost you anywhere from INR 50,000 to INR 5 lakh, and it doesn’t make sense to pay for the expenses when you can opt for maternity benefits with an additional premium. So, the number of add-ons depends on your requirements and budget.

Conclusion

When your base health insurance plan doesn’t protect you financially in certain circumstances, you can opt for health insurance add-ons.They cost you extra premiums but also provide additional benefits over and above the standard health insurance for individuals. Choose the add-ons specific to your needs to get maximum coverage.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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