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Health Insurance Riders

Health Insurance Riders

Health Insurance Riders

Health insurance riders are meant to increase the cover of a health insurance plan. It provides the insured with an enhanced coverage without the need of taking another policy through customisation of an existing policy. The cost of such provision is lower when compared to the price of a new policy. Insurance Regulatory and Development Authority of India (IRDAI) has set a limit on riders, which is 30% of the basic insurance policy. This article is an account of the various types of health insurance riders.

Hospital Expenses

Medical expenses could become the need of the hour at any point in time, unanticipated. The option provides the insured with a daily pre-determined amount to meet his/her hospital expenses. The number of days of permitted usage would be mentioned in the policy. The insured sum would be credited based on certain conditions.

Room Rent Waiver

This provision is usually included in the form of sub-limits on room rent. While sub-limits enable the insured to get general or semi-private rooms in associated hospitals, a room rent waive rider will provide him/her with a room of their choice without any additional costs. The limit of room rent is a percentage of the sum insured.

Maternity Package

The rider covers expenses that are borne during pregnancy and is applicable after the cessation of the waiting period, which could be more than 24 months. Some insurers offer coverage to new-born babies, from birth to the end of the policy tenure or maturity.

Critical Illness Cover

The critical illness rider is meant for major illnesses, for which the insured would be provided with a lump-sum amount. The sum of contribution here would be huge, given that diseases such as cancer, heart attack or kidney failure could derail the finances of the policyholder. Substantial coverage would help these citizens in availing quality and promising treatment at the best of hospitals across the country.

Personal Accident Cover

Provisions under this cover would be extended to the policyholder to help him/her in availing compensation for partial or total disablement, temporary disablement or accidental death. The rider, which is also known as double indemnity rider, comes at a reasonable cost.

Other Benefits

  • Apart from catering to the stated cause, insurance riders also provide the insured with the essential sum to pay off his/her debts. For instance, benefits meant for the coverage of critical illnesses and death benefits may allow the insured to collect a sum that is even double of what has been mentioned in the policy. Few companies even come with family income rider for periodic debt payments.
  • The sum of money granted on the death of the insured could even help the family in meeting their funeral requirements.
  • The sum received from the provision could help the parent invest in the child’s education, be it school, college or future studies.