Six health insurance endorsements you can add to a mediclaim policy

An add-on is a type of add-on that gives you additional benefits by paying an additional cost.

Critical illness coverage, hospital cash benefits, and other riders are some of the familiar riders you can purchase with your health insurance policies.

However, many endorsements are specific and may offer a particular policy or insurer, and they may not be available with all health policies.

This article looks at several endorsements that you can purchase with your health insurance policy.

Critical illness rider: While a comprehensive health insurance policy helps in getting coverage for critical illness treatments, the basic health policy has certain sub-limits. The critical illness rider provides additional coverage where policyholders receive a lump sum when they are diagnosed with a critical illness. The rider also costs you approx. 1800-1850 per year.

You have to know: On first diagnosis of the critical or acute listed illnesses covered by the policy, the policy provides a lump sum after the end of the survival period, as mentioned in the wording of the policy.

Naval Goel, Founder and CEO of PolicyX.com, said, “Critical illnesses can be financially taxing and mentally depressing, especially when the patient cannot continue with their work and ends up losing income. This rider works as an income replacement as the policyholder can use the money either for treatment or for personal use.”

hospital daily cash: Hospitalization makes it impossible for the patient to go to work, leading to a loss of income. This additional endorsement pays a daily allowance to the insured during his stay in the hospital. Insurance companies predefine an amount that the insured is likely to receive.

You have to know: It is similar to the daily income that the insured receive when they cannot work and help their family financially. This endorsement allows the policyholder to cover daily expenses in lieu of income. You can benefit from this amendment by paying approximately 550-600 additional premium per year*.

Ankit Agrawal, CEO and co-founder of InsuranceDekho, said: “The benefit doubles if one is monitored in an intensive care unit (ICU). You can use this money for any unexpected expenses that arise during your hospital stay.”

Consumable Cover Jumper: This is a new jumper designed to meet the expense of modern processing requirements.

This endorsement covers the costs of consumables that are not generally covered by the health insurance fund or only single-use equipment such as gloves, PPE kits, surgical items, etc.

You have to know: Insurers have made this endorsement available in the wake of covid-19, where the need for consumables has increased dramatically as these items are frequently needed in treatment and can put a dent in the policyholder’s pocket.

Thus, this jumper helps to reduce pocket expenses. You may need to pay approx. 450-500 per additional year to benefit from this endorsement.*

Exemption from room rent: Health policies come with a sub-limit on the room rent paid by the insurer in which, if the room rent exceeds the sub-limit, the insured must pay additional costs out of pocket. This endorsement increases the cap on hospital room rental charges by the insurance contract.

You have to know“The Room Rental Waiver Endorsement helps you take a room of your choice, including private and deluxe, without paying an additional charge,” Goel said.

You have to pay approx. 1,000 per year above the base health insurance policy premium to qualify for this endorsement.

Maternity rider: The maternity rider covers hospitalization costs and childbirth costs, including pre- and post-natal costs. The endorsement generally covers costs up to 30 days before delivery and 60 days after delivery.

You have to know: This endorsement covers delivery costs, both normal and caesarean section. Agrawal said, “The Maternity Rider covers all medical treatment of newborn childbirth costs, whether normal or Caesarean section, and newborn hospitalization costs with sub-limits stated in the police. The policy does not provide a full sum insured for maternity benefits.”

BCN protection rider: You benefit from the no-claims bonus (NCB) when you do not submit any medical claim during the insurance year; otherwise, the SOP becomes cancelled. However, this NCB protection endorsement ensures that the policyholder gets the NCB even if he raises the medical claim.

You have to know: You can take a PNE protection endorsement if you know you will have to make a claim because of your medical condition. If you do not benefit from this endorsement, you will have to give up your bonus in the form of additional cover or a discount on the premium or the additional sum insured. However, by purchasing this endorsement, you can make a claim and get the bonus at the time of policy renewal. You may need to pay approx. 650-700 per year* more to add this rider to your basic health policy.

*Note: The cost of endorsements is based on a health policy selected by a 35-year-old male for a 10 lakh sum assured.

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