What is Buy-Back in Health Insurance?

Understanding Buy-Back Options in Health Insurance Policies

When a person buys a health insurance policy from Star Health, they get a highly beneficial feature - buy-back of the pre-existing disease (P.E.D.) waiting period. This add-on cover can be highly beneficial for people with pre-existing conditions planning to buy health insurance. Wondering how?

Keep reading for a comprehensive insight!

Understanding Buy-Back in Health Insurance

While buying a health insurance policy, you can avail an optional cover in the form of buy-back. It enables policyholders to minimize the waiting period for pre-existing medical conditions. 

If you select a buy-back P.E.D. option, your health insurance company charges a comparatively higher premium. However, this ensures quicker access to coverage for existing illnesses, disregarding the policy's original waiting period.

Most health insurance providers do not offer the option to buy back pre-existing disease covers. So, you may fully capitalize on this feature by entering your details on the official Star Health website, choosing a policy with the buy-back cover, and getting a customized quote.

Salient Characteristics of Buy-Back of P.E.D. Waiting Period in Star Health

Some key features of the buy-back cover for pre-existing diseases by Star Health are as follows:

• Health insurance seekers get P.E.D. buy-back as an optional cover. Accordingly, they either opt for the add-on or exclude it while purchasing their health coverage plan. 
• This facility attracts higher premiums, and in most cases, the policyholder’s age and the nature of pre-existing disease determine the revised cost.
• By using this add-on, it is possible to reduce the waiting period from 36 months to 12 months. It indicates even though a beneficiary chooses this option; they must still wait for at least one year to enjoy coverage for pre-existing diseases. 
• All-Star Health customers can only avail of the buy-back facility during their first purchase of a health insurance policy. This means if they already have an existing plan, this feature will not apply to them during future renewals. 
• Interested people who want to get insured with buy-back options have to undergo strict medical screening at any of Star Health-nominated diagnostic centers. Provided their health condition is acceptable, the company will consider offering them a buy-back of pre-existing illnesses add-on.

In addition, if you are someone who is looking to port their existing health insurance policy from another company, then the buy-back P.E.D. option will not be applicable in your case. 

Common Exclusions in the Buy-Back of P.E.D. Plan

Before you plan to opt for the buy-back P.E.D. option, here are a few common exclusions to keep in mind: 

• Your insurer will not pay for hospitalization charges involving the treatment of your pre-existing disease within 1 year of buying the health policy.
• When the coverage is increased at renewal, the buy-back applies afresh to the increased portion. For instance, if you decide to increase the coverage from ₹5 Lakhs to ₹10 Lakhs, the extra ₹5 Lakhs coverage for pre-existing conditions will be accessible to you after another one-year waiting period.
• Some specific diseases/illnesses demand a 24-month waiting period from the date of policy purchase. These include thyroid, lipoma, cataracts, benign disease of the breast, etc. 

Buy-back P.E.D. add-ons come with their fair share of benefits and exclusions. Thus, before availing yourself of them, it is crucial to study the policy documents to make an informed decision and avoid unpleasant surprises down the line. 

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