Most of us settle back after having purchased a Health Insurance policy. Knowing that you have a solid financial backup in times of medical needs indeed gives a peace of mind. But in today’s world, it is better to be equipped with complete insurance coverage to tackle uncertainties.
Even comprehensive Health Insurance plans may not be enough to provide complete coverage. That is why most Health Insurance companies offer add-ons and riders. Health Insurance add-ons give additional coverage to the standard Health Insurance policies at an affordable premium.
What is an add-on? In simple terms, add-ons refer to the additional or optional coverage offered along with the standard Health Insurance policy, as the cover does not fall under the inclusion of the policy by default. The insured can opt for add-ons based on their unique health care and medical needs. However, the insured has to pay an extra premium. Any insured person with an Individual Health Insurance or Family Floater Health Insurance policy can avail themselves of the add-on coverage.
According to the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI), the total premium of the add-ons or riders availed should not exceed 30% of the premium paid towards a standard Health Insurance policy. Here are a few Health Insurance add-ons offered by insurance companies.
Critical Illness Cover
Why buy a critical illness add-on when most Health Insurance policies cover critical illnesses or diseases? Standard Health Insurance policies will indemnify the hospitalisation expenses incurred for treating the diseases. Treating critical illness may require prolonged hospitalisation and regular hospital visits, so a lump sum will be beneficial in such situations. An add-on will provide a lump sum if the insured is diagnosed with any of the listed critical illnesses. The lump sum is provided only for the listed critical illness or diseases under the policy.
Personal Accident Cover
Accidents are covered in Health Insurance policies without any waiting period. However, only the hospitalisation expenses arising out of accidents are covered by medical insurance policies. But a personal accident policy will provide a lump sum in case of accidents resulting in total, partial or permanent disablement of the insured person. Moreover, in the event of the unfortunate death of the insured due to an accident, the family member receives a lump amount under the add-on.
Hospital Cash Cover
Hospital cash cover entitles the insured to the daily allowance for each completed day of hospitalisation. The insured needs to be hospitalized for at least 24 hours to avail this benefit. This benefit is limited to a certain number of days, as enclosed in the policy clause and document. Let us say the benefit provides Rs. 1000/- per day for each completed day of hospitalisation for up to 14 days per hospitalisation and 30 days in a policy year. So, the overall hospital cash benefit is provided for 30 days during the policy year.
Some Health Insurance policies, especially the Family Floater Health Insurance plans indemnify the insured only for the delivery expenses. A Maternity Health Insurance gives wide protection covering all the expenses related to pregnancy and childbirth. The hospitalisation expenses, childbirth cost and the hospitalisation expenses of the newborn baby, if necessary, are covered under the maternity coverage. Also, be mindful of the waiting period as some policies might have them and some may not.
Unlike the other add-ons, Top-up Health Insurance policies are designed to provide additional coverage over and above the threshold limits of the existing Health Insurance policy. A Top-up policy enhances the Sum Insured of the basic Health Insurance policy, thereby entitling the insured to avail wide coverage. Besides, it also provides additional benefits, all at an affordable premium.
Outpatient consultations are not covered by most Health Insurance policies. The expenses of out-patient consultations might create financial stress as there seems to be a steady increase in medical inflation. So, outpatient expenses such as consultation fees, diagnostic charges and medications might be hard to manage. Thus OPD add-on cover will indemnify the expenses incurred for out-patient expenses as per the terms and conditions of the policy.
Availing of the add-ons is an act of upgrading and customizing the policy to your needs and requirements. Do not add every add-on that is offered, know your needs and choose the add-ons accordingly, otherwise, you might end up paying a higher premium. Opting for add-ons is a wise decision as it upgrades the existing Health Insurance policy and provides additional financial support in times of emergencies.