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Is There a Difference Between Renewing and Reloading Your Health Insurance Cover?

Health insurance is often regarded as a tricky purchase. The varied complexities that are involved in buying can make it seem like a daunting process, but in reality, it isn’t. Hence, it is must to have a thorough knowledge of the policy and understand its terms in detail before finalising any.

Health insurance plans have several jargons that only make it seem complex. But when broken down, they are simple terms riddled with legalese. Two terms that are confused by new buyers are renewal and reloading of medical insurance covers. It may sound similar at first, but are distinctly different from each other. This article aims to shed light on the difference of these terms helping young buyers make a clear choice of policy.

Renewal of health insurance plans

Health insurance is a contract for financial protection against medical treatments that are specified in the policy terms. Such contract is valid for a limited duration known as the policy tenure. And hence, at the end of each tenure, they need to be renewed. Insurance renewal is the process where the features and terms of the policy are reassessed by both, the insurer and the insured, and then extended for another policy tenure. Generally, this policy tenure is for one year but can be longer too. If not renewed, the coverage ends on its expiry and no more medical coverage is available. Hence, to obtain financial shield against medical treatments, it is advisable to ensure insurance renewal over each period.

Reloading of health insurance plans

Health insurance plans have a feature wherein any use of the insurance cover is replenished after its use. This is called as reloading your health cover. Reload or restoration of health insurance plans are of two types—complete exhaustion and partial exhaustion.

In complete exhaustion, the sum assured must be completely exhausted only after which the reload or restore feature kicks in. In contrast, partial exhaustion requires only a part of the coverage to be used and the insurance company reinstate the sum assured to its original level. With such benefit, you can enjoy the coverage of more than the sum assured as it gets replenished after use. Considering the soaring treatment prices, such restoration feature is nifty feature to look for when buying your family health insurance plan.

Although restoration is what you must definitely opt for, there are a few pointers that need to be considered. Some insurance companies allow the restoration benefit to kick in only for unrelated ailments. That means for any relapse of illness a medical treatment is sought, the insurance policy can no longer offer its benefits. Moreover, such restoration benefit is applicable for future claims only. Such restoration feature if not used during a policy tenure, cannot be carried forward to the next policy tenure. The benefit lapses and you need to purchase a fresh restoration cover each period.

So, these are the differences between renewing your insurance plans and reloading it. While both are vastly different from each other, renewing needs to be done consistently whereas opting for the reload feature must be done smartly. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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