Can Insurance Riders be Included In Health Insurance?
Everyone is aware of health insurance policies that can be availed to pay for medical expenses. Not only can you insure yourself and your family, but you can also claim the amount spent on medical insurance premiums under section 80D while filing your taxes. Many insurance companies offer several health insurance plans that can fit everyone's budget. However, a basic insurance plan may sometimes not be enough to cater to all your health care needs. In such cases, an insured can opt for health insurance riders. But what are these? Health insurance riders are additional benefits an insurer can attach to his basic health insurance plan over and above personal health. In addition, these riders can be applied to health-adjacent benefits like room rent and daily cash.
In this article, you can learn about the different types of health insurance riders and why you need to include at least a few in your basic insurance plan for maximum coverage.
Types of Health Insurance Riders
Health insurance riders can help an insurer customise a basic insurance policy to include items not included in the plan. Each rider you add to the policy will add an additional amount to your annual premium. The annual premium amount can be calculated using online health insurance premium calculators.
However, the insurance regulator, IRDAI, has limited the additional premium to 30% of the basic insurance policy amount. Here are the top health insurance riders you can add to your policy insurance.
Critical Illness Insurance Rider
Suppose you get diagnosed with any critical illnesses later. Your basic health insurance policy may not help in this case. However, with a critical illness rider added to your policy, you can get the amount insured from the insurance company for any medical expenses on the confirmed diagnosis.
For example, let's assume you have a critical insurance rider of INR 10 lakhs. If you have a confirmed diagnosis, you can approach the insurance company and, after verification, receive the entire amount in a lump sum. The money can be used to pay off the medical expenses related to the illness.
Read more- Here are the Top 7 Deadliest Diseases/Critical Illnesses of 2022
Accidental Disability Insurance Rider
In case the insured has an accident in the future that disables them, with an accidental disability cover, they can approach insurance companies to pay them for it. Depending on the severity of the disability, the health insurance company may pay them the total amount insured or only a partial amount.
For example, if the insurer has become permanently disabled and cannot work or have a source of income, the insurance company will pay the entire rider amount as a lump sum. However, if the injury is less severe, depending on the percentage of disability, they will receive the insurance amount.
Hospital Cash Insurance Rider
If you have been hospitalized and need to spend a few days in the hospital, a hospital cash rider is of immense help. You can use the cash to pay hospital fees and other related expenses for the patient. Insurance companies may disburse cash for a specified period. It could be a fixed cash amount or a certain percentage of the rider sum insured.
Room Rent Waiver Rider
Most basic insurance policies do cover room rent in full. There is a limit over which you will have to pay out of your pockets. For example, you have been hospitalized, and the room rent per day is INR 5000. If you only have a basic insurance plan, the room rent may be only INR 2000. You will have to pay the remaining INR 3000 of rent yourself.
A room rent waiver rider allows you to avail yourself of no cap on your room rent. The room rent rider will cover the entire rent amount for your hospital visit.
Maternity Insurance Rider
Childbirth is expensive. Not only do you have to pay for the actual expenses of childbirth at a hospital, but you also have to pay for pre and post-delivery expenses. Most basic health insurance plans do not cover maternity expenses. If you and your partner plan for a child, it is essential that you have a maternity rider added to your health insurance policy.
Since maternity riders can only be availed after a minimum waiting period of 24 months, you must add the rider before you plan for a family. Only in case of medical emergencies can an insurer receive any money from the insurance companies. Most times, the amount is barely enough to cover any existing expenses. However, with a few of the medical riders, you can also provide a little monetary support to your family.
If you have received a lump sum amount from your insurance company under the permanent disability rider, you can use that money to ensure your immediate living space is modified to help you move around. You can also use the money towards learning new skills and starting a new career.
Read more- Things You Should Know About Maternity Insurance in India
The Absolute Necessity of Health Insurance Riders
The basic health insurance policies in the market cover medical expenses incurred by the insured person. In case of any medical expenses, the insurance company will reimburse the amount spent on submitting the hospital or medical bills.
Health insurance riders have been created to cover many gaps in the basic insurance plan. Nobody knows the future, so it is necessary to safeguard yourself in case of unexpected situations like maternity, accidents, and even critical illnesses. The insurance riders provide additional protection to the insured person and help keep his future more secure.
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A health insurance rider is an additional coverage you can add to your existing medical insurance to cover several additional healthcare requirements.
Your health insurance may not cover everything that you want to insure against. Rather than take on a new policy to cover the rest, you can choose from the many available insurance riders and add it to the basic policy.
Not at all. Adding an insurance rider to your basic policy is entirely your choice. However, you must add riders you feel you may need in the future.
Yes. The additional cost will be included in the premium paid yearly. The amount can be claimed as a tax deduction under section 80D.
Yes. You can add the rider to your existing health insurance policy on renewal.