Do you know what is restoration benefit in health insurance? What are the loopholes in restoration benefits? Should you rely on such benefits?
Many terminologies are commonly used in health insurance which we never take seriously and ignore by looking randomly rather than going into deep. One such feature is the restoration benefit in health insurance.
What is the restoration benefit in Health Insurance?
Let us assume that Mr.Ajay has health insurance coverage of Rs.5 lakh. Unluckily he was diagnosed with cancer. The treatment cost him Rs.5 lakh and the entire health insurance was exhausted because of this treatment.
After few months, again he was diagnosed with heart-related ailment. For this, he has to spend Rs.2 lakh. Luckily while buying health insurance, he opted for restoration benefit. Hence, even though due to his cancer hospitalization the entire sum assured was exhausted, the health insurance company restored the sum assured and hence he is able to claim the Rs.2 lakh…