7 Add-on Covers For Parents' Health Insurance

The seven add-on covers worth adding to a parent's health insurance policy include a room rent waiver, a restoration (or refill) benefit, a no-claim-bonus protector, an OPD and diagnostics cover, a critical illness rider, a consumables (non-medical items) cover, and a domiciliary or home care cover. 

What are Health Insurance Add-ons? 

A health insurance add-on, also called a rider, is an optional benefit you add to a base health policy for a small additional premium. It fills a specific coverage gap that your health insurance policy doesn't cover, and for older parents, those gaps tend to be the ones that cost the most at claim time. Choosing the right add-on covers can help reduce unexpected medical expenses and make better use of your health insurance.

7 Best Add-On Covers for Parents' Health Insurance

Here's a quick overview of the seven add-on covers that can make your parents' health insurance more comprehensive. 

How is a Room Rent Waiver Add-on Beneficial for Parents' Health Insurance?

A room rent waiver removes the room rent limit in your parents' health insurance policy. This means you don't have to worry about paying extra if they choose a room that costs more than the limit mentioned in the policy. Also, with this add-on, there will be no proportionate deductions, where the insurer reduces payments for other expenses due to exceeding the room rent cap in the policy.

For older parents, this can be one of the most useful add-on covers, as it saves additional expenses and ensures a larger part of the hospital bill is covered by the insurer.

Let’s look at a simple example: your parent requires hospitalisation, and the bill comes out to be Rs 1,00,000, including Rs 24,000 for the room (Rs 8,000 x 3 days) and Rs 76,000 for other expenses. The policy caps room rent at Rs 5,000 a day.

The room charge exceeded the limit by only ₹9,000, but it increased the amount you had to pay to ₹37,500 because the deduction applied to other hospital expenses as well. A room rent waiver helps you avoid this situation.

How Does a Restoration Benefit Work in Parents' Health Insurance?

A restoration benefit automatically restores your sum insured after it has been partly or fully used during the policy year. That means if your parents get hospitalised in the same year for the second time, they will have coverage for the second claim.

Example: If your parents have a ₹5 lakh health insurance policy and they use ₹4.5 lakh for heart treatment in April, and in October, they require ₹3 lakh treatment due to an accident. Without a restoration benefit, only ₹50,000 remains. With the restoration of the benefit, the sum insured is restored to ₹5 lakh.

What is a No-Claim Bonus (NCB) Protector in Health Insurance?

A No-Claim Bonus (NCB) is the extra sum insured your insurer adds to your health insurance policy for every claim-free year. It can range from 10%-50% and sometimes even 100%, depending on the insurer.

In a regular health insurance policy, making a claim can reduce or even remove this bonus. An NCB protector rider helps you keep your no-claim bonus even if you make a claim during the policy year. This can be especially useful for older parents, who are more likely to need medical treatment.

For example, if the sum insured under your parents' health insurance is ₹5 lakhs, and the no-claim bonus is ₹2.5 lakhs, then a claim will lead to a reduction of this benefit under the normal policy; but with the help of an NCB protector rider, the bonus will stay intact.

Does OPD and Diagnostics Cover Pay Without Hospitalisation in Health Insurance?

Yes. An OPD and diagnostics add-on covers medical expenses that don't require you to be admitted to a hospital. This includes doctor consultations, prescribed medicines, blood tests, X-rays, scans, and other diagnostic tests.

 This add-on can be especially useful for older parents who need regular check-ups and tests to manage conditions such as diabetes, high blood pressure, thyroid disorders, or arthritis. 

How Does a Critical Illness Rider Work in Health Insurance? 

A critical illness rider pays a fixed lump sum if you're diagnosed with one of the serious illnesses covered under the policy. This amount is paid regardless of your actual hospital bill. Commonly covered illnesses include cancer, heart attack, stroke, kidney failure, and major organ transplant.

Unlike your regular health insurance, which reimburses hospital expenses, this payout can be used in any way you need. You can use it to pay for treatment, cover household expenses while recovering, make changes to your home, or meet any other financial needs during recovery.

Before adding this rider to your health insurance plans for parents, check two important things: the list of illnesses covered and the survival period. Many health policies require the insured person to survive for 15 to 30 days after diagnosis before the claim is paid.

What is a Consumables Cover in Health Insurance?

A consumables cover pays for everyday hospital items that are not covered by health insurance policies. This includes gloves, syringes, cotton, PPE kits, nebuliser masks, and other disposable items in the hospital. While the cost of each individual item might be minimal, the overall cost can add up during a long hospital stay.

This add-on can be especially useful for older parents, who may need longer hospital stays or more intensive care. Without a consumables cover, you'll have to pay for these non-medical items yourself because they are usually excluded from a standard claim. 

What is Domiciliary or Home Care Cover in Health Insurance?

A domiciliary or home care cover pays for treatment that is given at home instead of in a hospital. This benefit usually applies if the patient is too unwell to be moved to a hospital or if a hospital bed is not available. To be covered, the treatment should be medically recommended and supervised by a doctor.

This add-on can be especially useful for older parents who may find it difficult to travel or recover better at home. The advantage of this add-on is that you get to recover all your eligible treatment costs in the comfort of your own home.

How to Choose the Right Health Insurance Riders for Your Parents

Choose add-on covers based on your parents' health needs instead of adding all of them. Since every rider increases your premium, it's better to pay only for the ones that are likely to be useful.

• First of all, check the basic plan itself. If it already covers features like unlimited room rent or restoration cover, then you don't have to pay for that particular rider separately.

• Select riders according to the health conditions of your parents. For instance, if they have diabetes, high blood pressure, or another long-term condition, you may consider an OPD cover as one of the options.

• Check the room rent clause. A room rent waiver is useful only if your parents' policy has a room rent limit. If there's no room rent cap, you can skip this add-on.

• Look at the waiting periods. Some riders, such as critical illness and OPD cover, come with their own waiting periods. It's better to buy them before they're needed, rather than after a medical condition has already developed.