How Does Reload Benefit in Health Insurance Plan Work?

Health insurance policies come with a sum insured limit and the insurance company only compensates up to this limit. Once the limit is reached, the insured cannot claim even if they have an insurance policy.However, there is a way out. Some insurance policies with re-load benefit where the insured can reset the sum insured amount after the limit has been reached by paying a suitable premium. Let’s see how it works.

Let’s understand this with an example.Mr Verma bought a health insurance policy with a sum insured cover of Rs 5 lakhs. However, he got hospitalised just a few months after buying the policy where he exhausted Rs 4 lakhs of his cover and was only left with Rs 1 lakh cover. A few months later, and within 1 year of buying the policy, he got hospitalised again for another disease. While under usual circumstances he could only claim the remaining Rs 1 lakh and pay the remaining from his own pocket, he had a special plan which came with a re-load benefit.Due to this benefit, the insurance company resets the insured amount back to Rs 5 lakh or the claim amount (whichever is lower) which lets him file a suitable claim (up to Rs 5 lakh) for his healthcare expenses made for the second time in the same year.

• Reload up to the claim amount or the original Sum Insured whichever is lower:
• The claim has to be for a different illness unrelated to the first one or for a different family member (in case of family floater policy)

Reload benefit in health insurance can help you cover medical costs over and above your original sum insured amount. However, it comes with certain limitations. Family floater plans can benefit more out of this option owing to a greater number of members being covered even when the original sum insured is exhausted by one member of the family.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.