What is Restoration Benfit In Health Insurance

As the name implies, the Restore benefit replaces or refills your sum insured when it has been depleted, together with any collected Cumulative Bonus, during a calendar year due to illness or hospitalisation.

Example

For example, let's say you bought a Rs 10 lakh health insurance policy. You are diagnosed with a disease that consumes your whole insurance policy. Let's imagine you're hospitalised again in the same year for a different disease, resulting in a medical bill of Rs 5 lakhs. Your health insurance will not be able to pay the second hospitalisation if you do not have the Restore Benefit, and you will be responsible for the cost. If your health insurance policy includes a restoration benefit, your insurer will pay the cost of the second hospitalisation up to the base sum insured, freeing you of any financial strain.

The restoration benefit is only available once each policy year and cannot be carried over to the next year. As the benefit's name implies, it simply replenishes, therefore it can't be utilised for the initial claim. So make sure your health insurance has restoration benefit.