What is the Difference Between Restoration and Recharge Benefit?
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The restoration and recharge benefits in health insurance help with extra financial assistance in times of critical situations. Both offer their own features, while adding value to the policy and helping ensure comprehensive coverage.
Read on to understand the differentiation between restoration and recharge benefits in health insurance.
What is Restoration Benefit in Health Insurance?
The restoration benefits in health insurance are an added feature that refills your sum insured, once you have used it, either fully or partly. It is generally available with individual as well as family health insurance plans.
There are 2 types of restoration benefits:
- Complete Exhaustion
The insurer restores the sum insured only after the entire amount is used. For instance, if your cover is ₹20 lakhs and you have used ₹10 lakhs, the remaining amount will not be restored until the complete ₹20 lakhs is exhausted.
- Partial Exhaustion
The insurer restores the complete sum insured, as part of it is used. For instance, if you use ₹10 lakhs from a ₹20 lakhs cover, the insurer may add back the complete ₹20 lakhs.
Key Points of Restoration Benefit
- It offers better financial planning and complete peace of mind during emergencies.
- It is usually not applicable to the first claim.
- All the members can use the restored amount in family floater plans.
- It may slightly increase the premium as an added benefit.
- It can be used multiple times within one policy year.
What is Recharge Benefit in Health Insurance?
The recharge benefit in health insurance is an added feature that generally restores 100% of your sum insured once it has been completely used. It works in a similar way to the restoration benefit but is applied after the complete exhaustion of the health coverage.
Key Points of Recharge Benefit
- It helps you to easily access quality treatment without worrying about expenses.
- It activates only after the complete sum insured has been used.
- It does not come with different categories or options.
- It might slightly increase your premiums as an add-on feature.
- It can be used only once in a policy year.
Key Differences Between Restoration Benefit and Recharge Benefit in Health Insurance
Here is the table overview of the difference between the restoration and recharge benefits:
Features | Restoration Benefit | Recharge Benefit |
Meaning | Restores part or the full sum insured after it is used | Refills 100% of the sum insured only after full exhaustion |
Types | Available in complete and partial exhaustion options | No different types available |
Eligibility | Can be built in or added to individual and family plans | Usually offered as an add-on for individual and family plans |
Reset Frequency | Can be restored multiple times in one policy year | Can be used only once in a policy year |
Limits | May come with certain usage limits | May also have a maximum limit on usage |
Claim Coverage | May not apply to all types of medical claims | Works only after the full claim amount is used |
Reset Time | Valid within the same policy year and not carried forward | Also limited to one policy year and not carried forward |
The restoration and recharge benefits in health insurance coverage are two sides of the same coin. Both benefits allow your insurer to bear the cost of treatment beyond the basic sum insured of your policy.