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What Is Restoration Benefit In Health Insurance?

Published On Oct 14, 2022

The world is presently coping with the effects of the  pandemic catastrophe in this new decade. In our daily rush to balance work and personal lives, health has suddenly taken a backseat. The saying "health is wealth" has once more gained support. Having a health insurance policy is quite important in light of all of this.

The first concern that comes to mind when purchasing a health insurance coverage is what if it expires. The restoration benefit is just one of the many elements that modern insurance policies provide which you should avail if you too have similar concerns. 

What Is Restoration Benefit In Health Insurance?

What Does Health Insurance Restoration Of Cover Mean?

When your existing health insurance coverage's sum insured  has been used up, the insurance company may restore it to its original value with  the restoration benefit. With this option, you won't have to worry even if you use up all of your health insurance's sum assured. Let's use an illustration to better comprehend the restoration benefit in health insurance.

Mr. Krishhas bought a Rs. 8 lakh family health plan with restoration benefits. He had to have a procedure where the full amount of the sum insured was used due to his serious cardiac condition. He experienced a stroke in the months that followed, necessitating another operation for which the cost of care was Rs. 4 lakh.  The second treatment is also paid for by Mr. Krish's insurance company because his insurance coverage has a restoration benefit.

Why Is A Restoration Benefit Necessary In Health Insurance Plans?

It frequently occurs that the sum insured amount may seem insufficient after a few years due to the rise in lifestyle diseases and rising treatment costs. Having a backup strategy in the form of a restoration benefit will serve as a safety net at this point and provide extra coverage if needed. Therefore, choose wisely and select a recuperation benefit in your health insurance plan.

What Kinds Of Restorative Benefits Are Available For Purchase?

In health insurance plans, there are two categories of restorative benefits: complete exhaustion and partial exhaustion. Reading the fine print is advised because choosing between them should solely be dependent on the coverage you require.

The insurance company will reinstate the money insured under the total exhaustion restoration benefit only if you use up the entire sum assured. For instance, if your policy has a Rs. 10 lakh sum insured and you submit two claims, the first is forRs. 6 lakh and the second is for Rs. 7 lakh. The insurance provider won't return the money assured till the second claim has been settled up to Rs. 4 lakh.

After using a portion of the insurance coverage under the partial exhaustion technique, the insurer will reinstate the sum assured. In the aforementioned scenario, after the initial claim itself, the insurance company will reinstate the sum assured to the initial value of Rs. 10 lakh.

Who Should Use The Health Insurance Plans' Restoration Benefit?

Our recommendation is that anyone and everyone who can afford it should choose to use the extra function. Both medical emergencies and multiple hospitalizations are uncommon. Health insurance plans  for families do come with a restoration benefit that provides coverage to all covered members. 


Take advantage of this extra feature, to sum up. Even if you end up using your base policy coverage, it will spare you from financial stress and provide you with a mental piece of mind knowing you have a backup.

Also Read: Is It Wise To Buy Health Insurance Plans With Expensive Premium?


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.

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