Term of the day: Restore

| Updated on December 09, 2019 Published on December 09, 2019

‘Restore’ is an option (usually built-in) in a health policy by insurers such as Apollo Munich, HDFC Ergo and Max Bupa.

The feature ensures that a policyholder has adequate coverage even after his/her sum assured is exhausted. That is, if you utilise your sum assured, fully or partially, it will be restored to your policy.

For instance, if you have a health policy with a restore feature for ₹7 lakh and you happen to utilise the entire amount, the entire ₹7 lakh will be restored. In case of partial exhaustion, the sum assured will be restored to the extent of incurred claims.

Note that you can use the restore feature for future claims and not against any claim for an illness for which a claim has been paid in the current policy year. Generally, the restore option is available only once a (policy) year.

In general, policies with restore features are priced a little higher than the other health insurance products.

Published on December 09, 2019
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