Are Add-Ons And Riders The Same In Health Insurance?
Updated On Aug 11, 2021
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Standard health insurance policies come packed with a lot of benefits for its customers at an affordable price. Benefits like pre and post-hospitalization, domiciliary expenses, medications, room rents, ambulance charges, consultations, healthcare checkups, inpatient costs, etc. are provided to all the policyholders under the basic health insurance cover purchased from any health insurance provider. But, sometimes the coverage of this basic health insurance cover can be insufficient to meet the demands of the customers especially when seeking treatment for critical diseases, maternity cases, accidents, etc. Therefore, the insurance providers have rolled out add-on covers and rider plans to add extra benefit to their policies and seek extra coverage at an affordable price.
Add-on covers and riders are two different things which serve the same purpose of providing the customers with extra coverage at an affordable price. Riders add extra value to the base health insurance plan, and it can limit or restrict the coverage of the plan, depending on the policyholder's needs. While, an add-on cover provides complete security to the customer and is like an optional or top-up cover which suffices the demands of the customers not met in the basic health insurance cover.
About Health Insurance Riders
A rider is an additional benefit to the standard health insurance cover which provides extra coverage to the policyholder and amends the terms and conditions of the existing health insurance policy. It provides the options to limit or extend the coverage of their health insurance cover. It allows the customers to add extra benefits to their policy at an affordable price without purchasing a separate plan.
Different Types of Rider Plans
Let us look at some of the commonly bought rider plans in the insurance market, as it comes in several forms:
Room Rent Waiver
This health insurance rider lets the policyholder choose a room with higher or no sub-limit. With the help of this rider you can get rid of the cap on your room rent and enjoy a better room rent facility while seeking treatment during hospitalisation in case of an emergency. Individuals living in metro cities should have this rider as the room rents are expensive in hospitals in metro cities.
This rider plan is to help and financially support the individuals at the time of childbirth as it is one of the most blissful events in one's life and it must not be ruined because of monetary issues. Under this rider, the insurance company provides coverage and protection to the newborn child along with the mother. The costs of regular gynaecologist visits, vaccination, consultation, delivery, medication, etc. are covered under this plan.
Under this rider the customers can get daily cash allowances and benefits for their medical expenses during hospitalization in case of an emergency. The amount of daily cash expense ranges from Rs. 500 to Rs. 3,000 and can differ from one insurer to the other. The amount for ICU differs from regular hospitalization and this benefit can be availed only when a person is hospitalized for more than 24 hours.
About Add-On Covers
An add-on cover is an optional top-up cover which can be purchased on top of the existing health insurance policy to get additional features for medical expenses. You have to pay an extra amount of premium to get this cover and it comes with a set of benefits depending on your needs. The premium cost of an add-on cover is less when compared to the basic health insurance cover. Every health insurance policy has its own add-on covers which can be chosen by the policyholders after considering their requirements and other factors.
Different Types of Add-On Covers
Following is the list of some of the well-known and widely-bought health insurance add-on covers:
Critical Illness Covers
These plans come with a sufficient sum assured to compensate for the medical expenses incurred during the treatment of a critical disorder. This cover is helpful for people suffering from critical diseases like diabetes, hypertension, heart disorder, cancer, etc. as the treatment for these critical diseases is expensive.
Personal Accident Cover
This cover protects the people against any injury due to an accident including disability and death due to accidents.
You must be specific with your needs before choosing a rider or add-on cover and must make a choice accordingly. Both the covers extend the benefits of the existing health insurance policy at an affordable price and ensure quality treatment of the individual.
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.