What are Health Insurance Riders/Add-on Covers?

A Guide to Understanding Health Insurance Riders/Add on Covers

A standard health insurance policy often doesn’t cover everything that an insured needs. Hence, a health insurance rider plays an essential role in offering the extra benefits that the policyholder can purchase on top of one’s base health insurance policy with an additional premium payment.

Riders in health insurance help to improve the policy coverage and amend the terms and conditions of the original policy, thereby providing extra coverage for specific health needs and unique requirements.

It helps you feel more secure about your coverage and eliminates the need to buy another health insurance policy.

Difference between Riders and Add-On Covers in Health Insurance

While both riders and add-ons can enhance the policy coverage, Riders are additional benefits that one can opt to include in your main health insurance policy, whereas add-on covers are the additional coverage that can be added to the base health insurance policy as a separate cover.

Types of Health Insurance Riders in India

By knowing the types of health insurance riders, the policyholder can make informed coverage decisions. Here are some of the common health insurance riders that are commonly available in every health insurance policy:

1.  Critical Illness Rider

Being one of the most sought-after riders, a critical illness rider provides a lump-sum payment when the policyholder is diagnosed with a significant illness, such as a stroke, heart attack, or cancer.

The amount can be used for treatment and recovery of the disease. If you are not in a position to work, you can use it for daily living expenses. Unlike regular hospitalisation coverage, one who avails of this rider can receive the benefit directly, irrespective of the hospital bills.

2.  Maternity and Newborn Cover Rider

This rider could be ideal for someone who is planning to start a family. It covers maternity-related expenditures, such as delivery, prenatal and postnatal care, and certain newborn costs (vaccinations, etc.). Waiting periods are applicable based on the policy; hence, it is essential that one plans ahead before purchasing.

3.  Room Rent Waiver Rider

Some health insurance policies come with a room rent limit that restricts major options during a hospital stay. A room rent waiver rider helps to overcome these difficulties and allows one to choose a better hospital room without extra charges. It is beneficial in large cities where hospital rents are too high.

4.  Personal Accident Rider

This rider pays out a financial benefit when the insured suffers from an accidental disability or death. It covers rehabilitation expenses, lifestyle adjustments, and lost income following an accident. It acts as a good safety net for people who are in high-risk jobs and who travel frequently.

5.  Hospital Cash Rider

A hospital cash rider provides a fixed cash amount for each day if you are hospitalised. It helps with incidental costs, such as transport, meals, etc. Also, it alleviates the financial stress of being hospitalised.

6.  Top-Up and Super Top-Up Riders

These riders increase a policyholder’s total coverage beyond the base policy for a lower premium. A top-up rider can be used once a deductible limit is reached, whereas a super top-up rider accumulates multiple hospital bills before reaching the deductible.

Both these riders are budget-friendly options to enhance and improve your coverage for ongoing and serious health issues.

7.  OPD Cover Rider

A standard health insurance policy doesn’t cover outpatient services, such as minor procedures and doctor visits. An OPD rider can reimburse for these expenses and make it very useful if you require medical attention.

8.  Donor Expense Cover Rider

This rider can help cover expenses if you are facing an organ transplant. It covers the hospital care and surgery costs of the donor, which a typical plan doesn’t handle. This adds an essential layer of protection for complicated medical scenarios.

Benefits of Riders in Health Insurance

Riders serve several important functions, such as,

1. Unlimited Coverage: A rider can help fill the gaps left by a standard policy.
2. Cost-Effective: Riders can be purchased more easily with lesser amounts compared to buying a separate policy for the same coverage.
3. Customisation: A rider lets you customise the plan based on your age, family history, and specific health issues.
4. Financial Security: Riders can help lower out-of-pocket expenses during new treatments or emergencies.

How to Choose the Right Riders for Your Health Insurance?

It is essential to make a wise decision while adding a rider to your health insurance policy. Here are a few steps to be followed:

1. Assess Your Needs: Consider your lifestyle, medical history, and long-term health goals before choosing.
2. Understand the Costs: Think whether a rider can fit within your budget, as riders add extra costs.
3. Read the Fine Print: Look out for exclusions, waiting periods, and the claims process.
4. Compare Options: Check for every insurer’s riders and benefits. Analyse and compare options.

In summary, health insurance riders can be a valuable way to protect yourself against specific risks. It helps to customise your coverage, and understanding various riders in the health insurance market can help you choose the right ones that align with your financial situation and needs.