How Restoration Benefit Helps Family Policies?

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Restoration benefit or automatic restoration benefit is a specialised coverage feature that restores the sum insured amount after it is completely utilised under a healthcare policy.


This feature is ideal for families to provide continuous coverage for multiple medical emergencies in a year. In fact, the best part is that this benefit is available even to policies with a low sum insured. However, it cannot be carried forward to the next policy period.


How Automatic Restoration Works in Family Policies?


To understand the automatic restoration benefit, check the following example.


Mr Sameer purchased a family health optima insurance policy with Rs. 6 lakh sum insured and an autorestoration benefit, adding his wife and children as dependents. Unfortunately, he was hospitalised for an ailment for which he claimed the entire Rs. 6 lakhs.


After a few months, his wife got injured in an accident, requiring immediate hospitalisation. This sudden emergency resulted in a hospital bill of Rs. 4 lakh. Since the basic sum insured is already completely utilised, this feature will automatically restore the coverage without any additional premium.


What Benefits Can Your Family Get from the Restoration Feature?



  1. Continuous Coverage


One of the key benefits of an Auto-restoration feature is that it ensures uninterrupted protection for your family. Even after the base sum insured is used, you do not need to go through any hassle or paperwork to restore the coverage benefits.



  1. Multiple Claims in a Year


Living with multiple members also leads to having varied healthcare needs. Especially if your family consists of infants or senior citizens, frequent claims can be required due to their frequent medical needs. This is when autorestoration comes to your rescue to ensure continuous coverage when more than one member needs treatment in a single policy year.



  1. Cost-Effective Protection


With an automatic restoration feature, you are not immediately required to buy a separate top-up or super top-up policy. Since this extra policy can increase your budget, adding this benefit is a cost-effective way to ensure comprehensive medical assistance.



  1. Better Financial Security


According to CNBC news, the medical inflation is annually around 14% higher than general inflation. Therefore, with healthcare costs rising at this pace, even a short break in your health insurance policy can lead to heavy out-of-pocket expenses. However, with this continuous coverage, you can easily manage high treatment expenses with benefits like hospitalisation.


What are the Types of Auto-Restoration Benefits?


The autorestoration led to the restoration of either partial or full utilisation of the sum insured.



  • Complete Utilisation-Based Restoration:The sum insured is restored only after the entire base cover has been fully utilised.



  • Partial Utilisation-Based Restoration: A portion of the sum insured is restored even when only part of the base cover has been used.


Final Words


Having a restoration benefit under family health insurance is your key to getting continued medical protection. With this feature, you can ensure financial security from unexpected medical emergencies by replenishing the sum insured during the policy term.


However, before purchasing a healthcare plan for your family, verify whether your policy provides this benefit. Additionally, understand the conditions under which it applies.