What is the Recovery Benefit of Health Insurance?
Understanding the Recovery Benefit in Health Insurance Policies
Health insurance covers medical expenses but also includes additional benefits in certain policies. In this regard, some plans may provide a recovery benefit, which helps policyholders recover after they have been hospitalized. It is a fixed lump sum payment for non-medical costs to complement basic health insurance coverage.
Overview of Recovery Benefit in Health Insurance
A recovery benefit, also a convalescence benefit is a lump-sum amount provided on the condition of hospitalization of more than that specified number of days (usually 7-15 days). It helps cover those expenses that are incurred and are usually not covered by standard health insurance plans.
They include losses of income through recovery and post-hospitalization care such as nursing or therapies, travel, and special diets during rehabilitation. This benefit often comes as a feature in the case of some policies. Also, some insurers enable customers to opt for them in the form of an add-on.
Eligibility for Health Insurance Recovery Benefits
Eligibility is based on some specific criteria like:
●Minimum Stay in the Hospital: The insurance companies usually ask for a stay in the hospital for more than 7-15 days.
●Covered Treatment: The disease should be among the conditions that the policy covers.
●Policy Inclusions: It should be added to the policy or included as an add-on in the policy.
How Does Recovery Benefit in Health Insurance Work?
In case you are eligible for recovery benefits in health insurance, it facilitates the following:
●Meeting Hospitalization Criteria: Staying hospitalized beyond the minimum days required.
●Claim Submission: Submitting all the required documents, including hospital discharge summaries.
●Lump-Sum Payout: The insurer disburses a fixed amount upon approval, separate from medical expense reimbursement.
Benefits of Recovery Benefit in Health Insurance
●It includes expenses outside the scope of medicine, like home care, rehabilitation, and follow-up travel.
●It helps to regain the lost earnings of the working individual.
●Provides financial security, allowing focus on recovery without worry.
Who Should Opt for Recovery Benefit in Health Insurance?
Recovery benefits are available for:
●Working Professionals: For income replacement during extended recovery.
●Elderly patients: Those who would likely require more time to recover once admitted.
●Critical Illness Patients: Patients with severe illnesses that require long recoveries.
Factors to Consider Regarding Recovery Benefit in Health Insurance
Consider the following when opting for recovery benefits in health insurance:
●Payout Amount: The fixed sum varies with insurers and policies.
●Premium Impact: This add-on will add a slight increase to the premium.
●Waiting Period: There is a waiting period before becoming eligible for most policies.
●Policy Exclusions: Exclusions based on pre-existing medical conditions, etc.
Comparison of Recovery Benefit in Health Insurance with Standard Coverage
Standard health insurance provides cover for both hospitalization and medical costs. However, there are indirect recovery costs that remain uncovered. There is a fill-up gap on the nonmedical expenses side in a recovery benefit.
Recovery benefit is an excellent add-on to health insurance, especially for those at risk of having prolonged recovery periods. It will help alleviate some of the financial burden of non-medical expenses and ensure that policyholders can recover without the financial burden.
As a result, Star Health offers convalescence benefits in select policies, ensuring you get the required non-medical coverage when recovering from an illness.
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