What do you mean by convalescence benefit in health insurance?

A health insurance policy is the most important part and parcel of financial planning. A medical emergency can happen to you or your loved ones at any time. Additionally, the hefty cost of treatments and other medical expenses may create a financial burden for you. Thus, if you are covered under a reliable health policy, your expenses will be taken care of by the insurance companies. Apart from basic protection, health plans provide numerous advantages, such as the convalescence benefit of a health insurance policy. Continue reading to find out more about this feature. 

What is the Meaning of Convalescence Benefit? 

The term “convalescence” refers to a period of recovery from a disease or medical procedure. Under health insurance, the convalescence period refers to the benefits associated with the period of recovery. It is a feature of health policies that enables you to receive a set sum of money if you are hospitalized for longer than a predetermined period. This is a one-time payment made in accordance with the terms and conditions of the insurance policy. Listed below are some of the features of the convalescence benefit. 

• You can avail of this benefit in both individual and group health insurance policies. 
• Generally, the period during which you can claim this benefit is 7 to 10 days of hospitalization. 
• The policy may cover the cost of family visits to the hospital. 
• This benefit not only covers medical expenses but is also known as a recovery benefit. 

Understanding Convalescence Benefit In Detail 

A health insurance policy aims to provide complete protection to the policyholder in case of medical emergencies. However, apart from claiming hefty medical bills and invoices, the insurance companies provide you with compensation for income loss that has occurred during your medical condition. 

In simple terms, when your sick leaves overlap the period of your hospitalization and lead to the deduction of your salary, the insurance companies pay the exact amount of income loss for the extra leaves taken by you for your recovery. This feature of a health insurance policy is available in both individual and group plans. The convalescence benefit amount and premium payment mode are decided at the time of policy purchase. 

Let’s understand convalescence benefit with the help of an example. 

Shalini is working as a software engineer at an IT firm. She had an accident and was hospitalized for 15 days. Thus, she couldn’t continue working, which further resulted in an income loss. As Shalini was covered under the group health insurance policy with a convalescence benefit, the complete deductible income will be compensated in a lump sum by the insurance company.  

When Can You Claim the Convalescence Benefit? 

Generally, convalescence benefits are not covered by all health insurance companies. You can go through your policy document to check if it’s included in your insurance plan. In addition, you can also buy convalescence benefits as an add-on from the insurer. If you are hospitalized for more than the number of days mentioned in your policy documents, you can claim recovery benefits. For instance, you are not eligible for the recovery allowance if you are hospitalized for fewer days than those mentioned in your health insurance policy. 

Conclusion 

Income loss during hospitalization can be challenging. A convalescence benefit, however, will make sure that you don't lose any income while you're recovering. This additional benefit can be purchased with either individual or group health insurance policies. As most policyholders do not know about this benefit, this feature of the health insurance plan is also known as a "hidden benefit." Apart from providing income substitutes during a medical emergency, some insurance companies may also cover compassionate family visits to hospitals.

Also Read: Here's why you should upgrade to a multi-year health insurance policy