Before we begin, let's first understand what a health insurance rider is exactly.
To give a simple example, just how you laminate your phone screen to provide an added layer of safety to your cased phone, you buy health insurance riders to receive added benefits on your basic health insurance policy. Also, just how laminating your phone screen will cost you a few extra bucks, riders will come at a slightly higher premium amount.
Now, there are several types of health insurance riders that you can avail based on your requirements. So, let's first understand the benefits that you may receive under each of them:
Critical Illness Rider
A Critical Illness rider provides a lump sum amount to the life insured for expenses incurred on the treatment of a critical illness, such as cancer or stroke. For marginally higher premiums, you can attach a critical illness rider to your base health plan. Note that in some cases, a standalone Critical Illness policy is more cost-effective compared to a Health policy with a Critical Illness rider because you receive coverage at lower premiums.
Personal Accident Rider
A Personal Accident rider will provide the life insured or his/her family a predetermined monetary compensation in the following events:
- Accidental death
- Temporary or permanent disability
Just as the case with a standalone Critical Illness policy, in a standalone Personal Accident policy too you get coverage at lower premiums compared to the coverage provided by health plans with Personal Accident riders.
Maternity Cover Rider
Insurers today also offer maternity cover alongside a health insurance plan to provide for the expenses incurred during a child’s birth. Maternity cover usually comes with a waiting period of 2 years or more. Not sure what is waiting period under health insurance? Read here. If the health insurance policy is bought by a couple who is planning to start a family within a few years, then a maternity cover rider will be very useful to them. However, for a senior citizen couple, such a rider will not be useful.
Room Rent Waiver Rider
This is a bit complicated to understand, but let’s do it!
So, under a health insurance policy, the insurers put a ceiling on the amount to be reimbursed against the hospital room rent, which also includes doctor fees, nursing charges, and so on. Now, suppose you had a medical emergency and you were hospitalized for a few days. Fortunately, you had a valid health insurance plan under which your insurer had capped the room rent allowance at ₹2,000 a day. It was only later that it dawned on you that the room you stayed in was of a higher category and therefore costlier (₹3,000 a day). You had forgotten that the
However, since you have stayed in a higher category room, it will have a direct influence on all other charges (doctor fees, nursing charges, and so on). So,
However, much to your glee, New India Assurance Mediclaim Policy has recently designed the Room Rent Waiver rider. If you have availed this rider, the burden of paying a large chunk of the total claim amount (in case you’ve stayed in a higher category room) will reduce and you will have to bear only the difference
|To avoid the situation described earlier in this section, you can opt for the Room Rent Waiver rider.|
To return to the main topic: Do You Really Need Health Insurance Riders?
You may not need all insurance riders. For example, you can do without a Room Rent Waiver rider as long as you’re staying in the base room. Similarly, we suggest you opt for a standalone Critical Illness policy and a standalone Personal Accident policy instead of a rider in both these categories. Maternity cover can be opted for if you’re looking to start a family. But keep in mind the waiting period that comes with a Maternity Cover rider.