Health Insurance – Benefits of Recharge & Restore
Health insurance is a serious requirement for everyone, and people have definitely warmed up to this idea. Nowadays, many medical insurance companies have features such as Recharge of sum assured along with Restore of sum assured. The name of these features sound alike and it is understandable that it could be confusing to buyers. The truth of the fact is that both these features differ in the benefits that they offer. Although, both Recharge and Restore pertain to return of the total sum assured in your particular policy year, albeit with different terms and conditions.
Recharge of sum assured
Essentially, recharge is the reinstatement of the total sum that is assured. If the particular claim being made is payable as per the policy, the company shall mechanically reinstate the sum assured for the specific policy year.
This is subject to certain factors. The recharge option is available to you only when the sum assured along with the no claim bonus exhausts in the specific policy year. The Recharge is only available for claims made in the future. Specifically, it is not for any claims regarding illnesses/ injuries for which the person has been admitted in that particular year of policy. The complete recharge sum does not go beyond the assured sum for that particular policy year.
Also, the Recharge cannot be availed if only once claim has been made in that policy year. Moreover, the Recharge sum balance can be availed through the year of policy, till its imminent conclusion. Lastly, any amount that has not been used from the Recharge is not carried forward in the following policy year as it ceases to exist.
Restore of sum assured
Restore entails the total sum assured reinstatement pertaining to a policy. Yet, it comes with different conditions than that of Recharge. Consider a scenario where the basic sum insured along with multiplier benefit are used up because of claims during the year of policy. This claim could be paid or is deemed as payable in the policy year. In such a case, a Restore sum insured (which is the same amount as the basic sum insured) can be availed during that specific policy year. This is subject to conditions.
The Restore sum insured gets into place post completion of the basic sum insured and the multiplier bonus, in that specific year. The Restore sum insured is available only for future claims and not for any issues related to claims that have already been paid in the specific year. This Restore sum can be used just once during the specific year. And if it is not used in the current policy year then it does not automatically carry forward to the next year.
What works better?
There are multiple factors that go into deciding your specific medical insurance policy. Some of them include waiting period, exclusions, sub-limits etc. When it comes to the question of Recharge versus Restore, it does seem like Recharge is the better option.
Yet, there is an issue with both these choice as the problem of unrelated claims is common to both. Let us say that you have a cardiac problem that has depleted your entire assured sum for the current year. In that case, you will not be able to make use of Recharge of Restore. These options will only be available for any claims that exist outside of heart treatment. Another drawback is that the sum assured comes into plan only after the sum assured as well as no claim bonus is used up, this is truer for the Restore option.
The main difference between the two is that the Restore option can be availed only after you have completely finished your basic sum assured. The Recharge option on the other hand, is available even if the claim amount made by the insured individual goes beyond the basic sum assured. This is in regard to a second claim in the same policy year.
With the Restore option, ensure that you are holding a good amount of medical cover as these plans work best along with a floater policy. With the Restore option though, the sum insured gets refilled, with your family members being able to use your covers. Your choices depend on your immediate and future medical needs!