When one goes through medical surgery, there are various stages of treatment. It begins with pre-operative tests and consultations. This is followed by the surgery and then the recovery. During this entire process, the patient is usually away from working and suffers a loss of income.
In some cases, the recovery period can run into weeks or even months. To compensate policyholders for this loss of income, many insurance providers offer Recovery Benefits or Convalescence Benefits with health insurance plans. In this article, we will talk about Recovery benefits in a health insurance policy and everything that you need to know about it.
What Is Recovery Benefit In Health Insurance?
Recovery Benefit is the compensation for the loss of income when a person is under treatment for an extended period. Insurers offer this benefit to help policyholders recover from an illness while being compensated for the loss of income. This is one of the unique benefits of health insurance policies but it is not available with all plans. Make sure that you go through the policy documents carefully to understand the benefits offered by the insurer.
When Does Recovery Benefit Come into Action?
First, you can claim Recovery Benefit only if it is included in your medical insurance policy. Or, you should have purchased a Recovery Benefit add-on cover. The insurer will define the term and conditions of this benefit which will apply. The policy document will specify the minimum number of days of hospitalisation, after which you can claim this benefit. So, if the terms specify that the Recovery Benefit will be available only after a minimum of 10 days of hospitalisation, then you cannot claim it earlier.
Does Every Health Insurance Plan Have Recovery Benefit?
While there are numerous benefits of having a health insurance policy, the Recovery Benefit is useful in cases where the treatment or recovery is taking a long time, impacting your earnings.
Every health insurance plan may not include Recovery Benefit. Therefore, you must check with the insurance provider and review the policy documents to see if it is being offered. Also, if the insurer offers it as an add-on cover, you might have to purchase it.
Important Things to Remember About Recovery Benefits in Medical Insurance in India
Here are some essential points to remember about Recovery Benefits:
- The benefit is made available to the policyholder only after the completion of ‘x’ days of hospitalisation as specified by the insurer on the policy document
- Usually, insurers offer these benefits to individuals and can offer them in group plans too
- Some insurers also include the costs of family visits to the hospital under Recovery Benefit.
- If your insurance policy does not include Recovery Benefit, check with the insurer if the same is being offered as an add-on cover.
- While the health insurance policy will cover medical expenses, compensation under the Recovery Benefit is separate.
Recovery Benefit is one of the most important advantages of health insurance if your medical condition requires a longer recovery time. Hence, before buying a policy, look at the inclusions, exclusions, and add-on covers offered.
For example, if a family has a history of cancer, it is prudent to buy cancer insurance – a critical insurance cover where the insurer pays the sum assured on being diagnosed with cancer. This helps manage the treatment costs and reimburses the policyholder for the loss of income.
Remember that insurance providers offer a range of benefits under health insurance in India. It is important to be aware of them so that you can ask your insurer and reduce the financial impact of a medical situation. Some insurers also put a cap on the compensation offered for the loss of income. Hence, it is important to go through the policy document carefully to understand all the terms before buying it. Good Luck!