Exploring Common Health Insurance Add-Ons
Updated On Jul 05, 2021
When looking for an ideal health insurance policy, we often come along plans that do not meet our requirements at all. While there are some that cater to our needs perfectly, there are also a few that fit well as per our needs, but not completely. If you too have found one of the best health insurance policies in every aspect, but feel disappointed as it does not cover one of your key medical needs, do not worry. You can always buy an add-on cover to gain coverage that your standard health insurance policy does not provide.
What Are Some of the Common Health Insurance Add-on Covers?
Health insurance companies provide health insurance policies of different kinds. The best thing to do when your basic health insurance does not cover additional coverage is buy add-on covers.
Below mentioned is the list of add-ons that you can consider buying to make your health insurance policy complete.
1. Critical Illness Cover - This is the add-on cover in which your health insurance company will provide you a lump-sum amount in case of diagnosis of any critical illness such as stroke, cancer, kidney failure, heart attack and others, irrespective of the cumulative treatment expenses.
If your existing health insurance policy provides you a cover of Rs. 7 Lakh, and you buy a critical illness add-on cover of Rs. 10 Lakh, you will receive Rs. 10 Lakh in case of critical illness diagnosis, even if your total treatment cost is Rs. 9 Lakh.
2. Personal Accident Cover - This is the add-on that covers you against accidental damages suffered. This add-on will compensate in any outcome of the accident, be it permanent total disablement (loss of two limbs, sight, speech and hearing) or permanent partial disablement (loss of an arm, leg, one eye or one ear). You will also be covered in case of temporary total disablement (fractures in both limbs and temporary blindness). In case of death due to an accident, the lump-sum amount under the add-on is given to the family.
3. Waiver of Room Rent - In case of basic health insurance policies, hospital room rents are capped to a certain limit. Buying an add-on cover of room rent waiver for such health insurance policies can help in increasing that limit or ensuring that no-limit is imposed. It is to be noted that if there is no capping on room rent, the latter allowed to the extent of the sum insured.
4. Hospital Cash Cover - This is an add-on cover that provides the insured individual with daily cash allowance for the period during which one is hospitalised. Keep note that the insured must be hospitalised for more than 24 hours or 1 day so as to receive the allowance. This beneficial allowance helps to be fruitful in compensating for the loss of pay during hospitalisation. Yet another benefit of hospital cash cover is that it can be utilised on food, conveyance and other such expenses.
5. Maternity Cover - The add-on of maternity health insurance cover takes care of an insured individual’s all expenses related to pregnancy and childbirth. Please note that some health insurance companies also provide cover for the child’s expenses, either up to 3 months from the child’s birth under maternity cover or up to the maturity period of the policy.
Now that common add-on covers have been discussed, note that also present are Zone Upgrade, Global Coverage, International Second Opinion, Air Ambulance, Extended Cumulative Bonus, Unlimited Recharge, and many more.
Things to Remember
- Health insurance add-on covers have to be added separately
- A policyholder has to pay an additional premium for add-on covers
- As per IRDAI, the collective premium for all add-ons purchased under a single health insurance policy cannot exceed 30% of the original premium amount.
What Is the Benefit of Buying an Add-on Cover?
When you choose an add-on cover, you not only gain coverage for features that your standard health insurance policy does not cover, but also benefit with:
- Customized health insurance policy
- At less premium get features covered
- No need to buy another standalone cover
- Tax exemption up to Rs. 35,000 under Section 80D
Health insurance companies have left no stone unturned in providing the best of products and services to the policyholders. You too should come forward in making your health insurance policy perfect according to your needs and making your investment worthwhile.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.