Health insurance plan: Protect yourself with reinstatement benefit

While it will safeguard you from the possibility of exhausting your sum insured, understand the nitty gritty before buying

Even if you have a health insurance policy with a reasonably large sum insured, such as Rs 15 or 20 lakh, there is always the risk that the amount may fall short in certain circumstances. One way to overcome this risk is to buy a policy that offers the reinstatement of sum insured benefit.

This feature is known within the industry by several names: recharge, reload, regain, refill, restore, reassure, etc.

How does it work?

Suppose that a family has a floater policy with a sum insured of Rs 10 lakh. A family member falls ill and the bill comes