What is the health endorsement under medical insurance | Features and more
“Health is priceless. The doctor has” – Ljupka Svetanova, The New Land.
Changing lifestyles and skyrocketing medical costs have made it mandatory for everyone to buy a medical insurance policy. Without insurance coverage, you run the risk of draining your hard-earned cash or borrowing at exorbitant rates to get quality medical care for you and your family. The issue can become life threatening if proper medical attention is not available in time.
While it is necessary to choose good health insurance, it is often not sufficient to cover all of your needs. It is not enough for the health insurance policy to cover only basic hospitalization costs. There are a host of other treatment-related expenses before and after the patient is hospitalized. These can be a significant amount and create a hole in your pocket. A basic medical insurance the plan does not cover all of these expenses.
What is the solution? How do you avoid paying out of pocket?
You don’t have to worry because health insurance policies have “endorsements” that come to your rescue. A rider is a feature that provides additional benefits to the policyholder (apart from basic coverage) in return for payment of an additional premium.
For example, by choosing critical illness cover with your mediclaim policy, you can get cover for serious conditions like cancer, heart attack, stroke, etc., which are not covered by the mediclaim policy. base. This critical illness coverage is known as a rider and requires you to pay an additional premium to the insurer. A rider is important because even the better medical policy does not cover 100% of these expenses.
Importance of riders in health insurance:
Apart from hospitalization, there are a host of expenses related to an illness, such as medications, consultation fees, ambulance fees, diagnostics, etc. These are often not covered by the basic insured capital. A rider provides this extra layer of protection to policyholders by also covering other related costs.
Types of health insurance endorsements:
Some of the important endorsements available with a mediclaim policy are mentioned below:
1) Critical illness cover:
As shown in the illustration above, critical illness cover protects against the financial risk of serious illnesses such as cancer, heart attack, kidney and liver failure, stroke, etc. medical insurance plan does not cover any of these illnesses. By opting for this endorsement, you receive the insured capital as soon as the disease is diagnosed. This lump sum can be used by the insured for all his expenses.
2) Personal Accident Insurance:
An accident can be completely debilitating, resulting in loss of life or livelihood. A personal accident covers the risk of death and partial/total disability due to injuries sustained in an accident. The amount received can be used for treatment, recovery and to compensate for loss of income due to an accident.
3) Maternity cover:
This endorsement covers all expenses related to pregnancy and childbirth. There is usually a waiting period, and expectant parents should inquire about this before purchasing this coverage. Even the best medical insurance the policy does not cover pregnancy-related expenses, and this rider is useful for couples planning a child in the future.
4) Daily Cash Rider:
This endorsement provides for a fixed amount of daily allowances for a determined number of days spent in hospital. This money can be used to cover medical expenses not covered by your health insurance policy, such as the cost of medication.
5) Room rental waiver amendment:
Health insurers generally set a ceiling on the rent for the hospital room that will be payable by them. If you want a better room with higher charge, the extra cost should be your responsibility. Medical insurance plans may have a room rental waiver endorsement that helps you take a room of your choice at no additional cost.
6) Medical Consultation Cover:
This endorsement covers the high cost of a consultation with specialist doctors and surgeons. Some policies also cover the cost of seeking a second opinion from overseas medical experts which may be billed in dollars or euros.
7) Diagnostic Survey Coverage:
This endorsement covers the cost of laboratory and pathological tests and investigations required for certain advanced illnesses.
8) Preventive health check coverage:
This rider can be used to cover the cost of your annual preventative health checkups related to blood sugar tests, urine tests, ECG, lipid profile tests, etc.
Key Benefits of Health Insurance Riders:
Provides a lump sum: Critical illness and personal accident covers give a lump sum that can be used by policyholders and their families for any need that arises
Affordable premiums: You can avail additional benefits of the policy by paying a nominal amount on the premium
Tax benefits available: The premium paid on endorsements is also eligible for tax benefits under Section 80D of the Income Tax Act
Compensation for loss of income: A serious illness or a major accident can lead to the loss of a job and an income. The lump sum received can also be used to support household expenses during the recovery period.
Financial support for dependents: In the event of the unfortunate death of the insured, the capital helps the family to settle debts, pay school fees, etc. and meet expenses that cannot be avoided
Waiver of premiums: Some of the best health insurance companies offer to waive future premiums for a policy in the event of an accident or serious illness troubling the insured
Wide range of options: Riders can be used to customize the specific requirements of policyholders and their families. A basic health insurance policy may simply provide generic coverage which may not be sufficient.
No one can question the importance of health insurance today. With lifestyle diseases on the rise, it’s as simple as a bank account or a phone connection. It is not a luxury but a necessity now and in the future. A jumper perfectly complements a good medical insurance policy providing you with effective and comprehensive coverage. A combination of health insurance and a rider greatly relieves you of financial worries when you need the stress least!