Importance of Add-on Covers with Health Insurance Plans
Updated On Dec 04, 2020
The significance of health insurance is massive. Without a good health insurance policy by their side, none can imagine handling their expensive medical hospital bills. Of supreme support in covering sky-rocketing medical expenses incurred during an emergency medical situation, health insurance is the optimum solution, opting which one can save their hard-earned savings as well as peace of mind from getting exhausted.
When it comes to managing medical expenses, a policyholder gains superior support from their basic health insurance. However, apart from the basic benefits that come with a health insurance policy, a policyholder can choose to go with add-on covers and increase their range of benefits.
What is an add-on cover?
Add-on covers are additional features that one can invest in to gain enhanced coverage. It can be said that add-on covers play a significant role in providing policyholders with superior protection against unknown medical emergencies that may involve higher medical expenditure.
Policyholders looking for extra coverage can prevent investing in a new policy altogether by choosing add-on covers.
What is the need of buying add-on covers?
Add-on cover is the best solution for policyholders who want additional protection against a condition that is not considered under their basic health insurance policy. By choosing add-on cover, you will be able to easily customise your health insurance plan. In addition to the same, add-on covers will come across as less costly in comparison to a new standalone health insurance policy. Not only you will gain the freedom to pay less premium, but also the chance to claim tax exemption under Section 80D of the Income Tax Act.
Add-on cover options
- Critical illness cover
The add-on cover for critical illness provides the policyholder with a lump sum amount on diagnosis of a covered critical illness. Note that the coverage is provided irrespective of the total expenses incurred. Generally, critical illness cover provides coverage for 10 to 15 ailments, however, they can also cover up to 38 ailments.
- Personal accident cover
Personal accident add-on cover provides the policyholder with the cover and compensation for accidental death, permanent total disablement (loss of two limbs, speech, sight, and hearing), permanent partial disablement (loss of an arm, leg, one ear or one eye), as well as temporary total disablement (temporary blindness and fractures in both limbs). Usually, personal accident add-on cover provides cover for about Rs. 2 Lakh to Rs. 5 Lakh, but, the amount varies with policy.
- Maternity cover
The add-on cover of maternity benefits provides coverage for maternity health insurance expenses incurred during the birth of the child. This particular add-on benefit provides cover for the delivery expenses as well as post-natal care. The policyholder may be able to take benefit from this cover after a waiting period of 2 years or more, depending on the health insurer and the policy chosen. Note that the option of covering new born babies, right from the birth till the end of the policy tenure is also available. It is advised to buy this specific cover well in advance to avail the cover when it is actually required.
- Room rent waiver
The add-on of room rent waiver allows the policyholders to choose a room that has a higher sub-limit or no sub-limits. Generally, most health insurance companies put a cap on the room rent, thereby restricting the room rent benefits in case of hospitalisation. Having this add-on by your side can allow you to choose to stay in a better room without losing your savings. Note that room rent waiver is extremely beneficial when one is residing or undergoing some treatment in a metro city where the hospital room rents are quite high.
- Hospital daily cash
The beneficial add-on of hospital daily cash provides a policyholder with a daily cash amount that helps them manage their additional expenses well. Note that these additional expenses are the ones usually not covered in the basic health insurance cover. Opting for hospital daily cash, you gain a daily allowance as specified uncover coverage terms.
- Top-up/Super top-up cover
Referred to as a stepney to a health insurance policy, top up or super top up plans are the add-on feature that provide cover over and above the threshold limit. It is when the threshold limit or deductible gets exhausted for paying hospital bills that top up or super top up plans come into action. All in all, top up or super top up plans help one cover extra medical expenses, without having them to worry about their financial stability.
Buying add-on covers can prove to be highly beneficial for you. However, make sure before you go ahead with the purchase, you have considered factors such as age, profession, family size, future expenses, family history of ailments, existing plan coverage, and many more.
To know more about add-on covers from different insurers, feel free to talk to our experts at 18001205698.