Uses of Health Insurance Riders
Published On Nov 05, 2021, Updated On Nov 06, 2021
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Health insurance plans are bought by the policyholders to cover the expenses of their treatments in case of a medical emergency. But, due to certain conditions, the coverage of the purchased health insurance plan can be insufficient for the policyholders. To help the people overcome this situation, the health insurance providers have come up with rider covers that help the individuals in expanding or limiting the coverage of their purchased health insurance plan. These plans are affordable and comprehensive, as it comes packed with customized features and benefits for the individuals.
About Health Insurance Riders
A health insurance rider is a plan that adds extra benefit to the regular health insurance cover and amends the terms and conditions of the existing health insurance policy. It lets the policyholder’s to either limit or extend the coverage of their basic health insurance plan.
Must Read: Need for Riders in Health Insurance
Uses of Health Insurance Rider Plans
Following are some of the common uses of health insurance rider plans:
Compensation For The Debts
The health insurance rider covers offer lump sum payment of claim amount as death benefits to the policyholders. These payments can be used to compensate for the income loss incurred due to the treatment of a critical disease or in case of the death of the policyholder. Some insurers offer debt payments on a periodic basis depending on the type of rider chosen. Under an accidental benefit cover, the claim amount doubles for paying off the debts. The extra amount offered by the insurer can be used to pay off debts, loans, mortgages, etc. Some health insurance providers offer disability income payoffs to the people who are suffering from a temporary or permanent disability.
Paying For Child's Education
The lump sum payment received from the claim amount of the rider plans can be used to pay for the child’s education fees. This amount can be used for paying off the fees for college, school, etc. This ensures a safe and secured future of the policyholders with the rider covers.
Pay For Funeral Expenses
Under the personal accident cover of the health insurance plans, the amount received as the claim amount can be used to compensate for the expenses of the funeral of the policyholder in case of their death due to an unforeseen accident. Many health insurance providers like Future Generali, Bajaj Allianz, Bharti AXA, etc. offer this feature to their policyholders under the rider plans bought by them.
Various Types of Health Insurance Riders
Following are some of the prominent types of health insurance riders that can be considered by the policyholders:
Room Rent Waiver
This rider allows the policyholder to choose a room with higher or no sub-limit. It also helps the people in getting rid of the cap on their room rent and enjoy a better room rent facility while seeking treatment during hospitalisation.
Maternity Rider Plan
This rider plan offers financial compensation to the policyholders for looking after the costs of treatments incurred during the birth of a child. These maternity plans look after the medical dues of both the baby and the mother.
Under this rider, policyholders get daily cash allowances and benefits for their medical expenses during hospitalization in case of an emergency. The amount of daily cash expense may range from Rs. 500 to Rs. 3,000.
Personal Accident Rider
This rider cover looks after all the dues incurred after an accident of the policyholder. Accidental death, permanent or temporary disablement are all covered under this rider cover for the policyholders.
Critical Illness Cover
This rider plan is known to look after the medical bills of the policyholders incurred during the treatment of a critical disease like sclerosis, stroke, cancer, diabetes, and much more. This rider plan is a life-saver for people with a medical history of life-threatening diseases.
Health insurance rider plans are important for the policyholders in case of extended benefits of the health insurance plans. People with insufficient health insurance coverage and enough financial budget, can invest in a suitable rider plan for themselves and their loved ones. There are a plethora of options in the insurance market, and you can choose the one that is most suitable for you.
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.