Health Insurance 190 views February 18, 2021

A medical emergency can hurt an individual both physically and financially. While health issues may not be avoidable, you can at least be financially secure when faced with such issues. A health insurance plan pays for a medical emergency and keeps your savings intact. But it’s in human nature to wish for more than they have. Health insurance add-ons (riders) help policyholders enhance their benefits. Health insurers provide different add-ons, commonly known as riders, with which individuals can customize their health insurance plans according to their requirements. So what are the different types of health insurance add-ons that you can have? In this article, we will discuss the same. But before this, you should know what an add-on or rider is? Keep reading to know all!

Health Insurance

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What Exactly are Health Insurance Riders?

A health insurance rider is an additional benefit that you can attach to your health insurance plan by paying an affordable premium amount apart from your basic premium. The rider premium amount will depend on several factors such as policyholder’s age, the sum assured, policy type, policy term, etc.

However, this amount cannot be more than 30% of your policy’s basic premium as per the IRDAI rules. You should also remember that a rider may not be available with all the policies, so it depends solely on the insurer.

Let’s Read Different Types of Health Insurance Add-ons

Some of the most popular health insurance riders are maternity cover rider, personal accident rider, critical illness rider, room rent waiver, and hospital cash rider. We are telling you about each of them below. Do check!

Maternity Rider

For any woman, maternity or pregnancy is considered to be a crucial milestone. Considering the current times and healthcare costs, maternity-related expenses can be costly if your health insurance plan does not cover them. Since all health insurance plans do not cover maternity expenses, you can opt for a maternity rider on your plan and get cover for the childbirth-related expenses

There are different expenses you can have during maternity, such as pre-and post-delivery expenses, vaccination charges, etc. That’s why you should check closely whether the maternity rider is providing coverage or not for these expenses. Also, check the waiting period for maternity riders that usually ranges from 9 to 24 months.

Critical Illness Rider

If you are not going for a standalone policy for critical illness, you can choose the critical illness rider with your health insurance policy. With this rider option, the policy will provide coverage on being diagnosed with any of the specified critical illnesses such as heart failure, kidney failure, cancer, tumor, etc. Remember that the sum assured for a critical illness rider varies from one policy to another depending on the insurer. Also, this sum assured will be separate from your basic sum assured.

Suppose you have a health insurance plan with a sum assured of INR 20 lakh. Now you have also chosen a critical illness rider of INR 4 lakh. Now, if you are diagnosed with a critical illness, you would get a cover of INR 4 lakh.

Personal Accident and Disability Rider

Accidents can happen to anyone anywhere anytime and cause financial upheavals to your family in case of an individual’s accidental death, permanent total disablement, permanent partial disablement, temporary total disablement.

A personal accident and disability rider protects individuals’ families in case he or she happens to meet any of the casualties, due to an accident, during the policy term. The insurance company will pay an additional sum assured as a death benefit, in case the policyholder dies due to an accident. However, the sum assured will depend on the severity of the injury. The severity can be loss of sight, loss of two limbs, loss of one limb and one eye, loss of hearing in the ear(s), etc.

Room Rent Rider

Health insurance plans cover room rent with a sub-limit. It means you can get a converge amount up to a definite limit. You will need to pay the amount above this limit from your pocket should the actual cost rise beyond the same. Suppose your health insurance plan has a limit of INR 6,000 per day on the room rent, and you have chosen a room rent worth INR 8,000 per day. Now, you will need to pay this extra INR 2,000 per day (8,000 – 6,000) from your own.

But when you choose a room rent rider on your health insurance policy, you don’t need to pay any extra money as the rider will ensure the full payment. With that in place, you can choose a room of your own choice.

Hospital Cash Rider

When you choose this rider option, health insurance policies will provide a daily cash allowance to you to take care of your expenses for the days you remain hospitalized. The payout is known as the hospital cash and varies from one policy to another. A health insurance company will pay this benefit once during your policy term up to specified days. However, daily hospital cash benefit comes into the picture only when your stay at the hospital should be at least 24 hours. You will not get this benefit for hospitalization below 24 hours.

So, these are some of the common health insurance riders that you can choose to enhance your overall protection. You need to pay an extra premium towards these riders, but if you consider the long-term effect, you would certainly find them cost-effective. But choose the riders according to your requirements.

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