Add-on insurance covers make overall health protection plans more comprehensive and help protect the policyholder and his family from financial hardship in case of a medical emergency. Important health insurance riders include those for critical illness, hospital cash accidental injury and maternity coverage

The impact of riders on the overall premium of the health insurance policy will vary depending on the type of rider and the insurance company’s underwriting guidelines. A critical illness rider will push up the premium by 10-20%, a hospital cash rider will increase it by 5-10% and a maternity rider will hike the premium by 1-5%

Rakesh Goyal, director, Probus Insurance Broker, says riders in a health insurance policy provide extra benefits and coverage beyond the basic policy, giving individuals added protection for specific needs or situations. “People should consider taking health insurance riders when they have specific health concerns or life events like marriage, starting a family, or when their basic policy doesn’t cover certain conditions

Enhancing coverage
The base health insurance policy may not have a high coverage amount to cover all of your medical expenses. Moreover, the base health insurance policy may not cover certain expenses such as dental care, vision care, or alternative medicine. Pankaj Goenka, assistant vice president & head, B2B Business, Insurance Dekho, says the base health insurance policy may have a waiting period for pre-existing conditions. “Riders can help reduce the waiting period, so that you can get coverage for your pre-existing conditions sooner. Riders can provide you with additional benefits, such as a daily hospital cash allowance, and a lump sum payment for critical illness

Types of riders
Individuals should opt for riders depending on their need, scope of base policy, family/self medical history as foreseeable in near and distant future. For instance, a critical illness rider provides a lump sum payment if the insured is diagnosed with a critical illness, such as cancer, heart attack, or stroke. The day 1 pre-existing disease rider waives off any waiting period for pre-existing diseases like hypertension, diabetes, asthma and hyperglycemia. This rider can be opted for at the time of buying the policy for the first time

The hospital cash rider provides a daily cash allowance if the policyholder is hospitalized. This can help to offset the financial burden of hospitalization, such as the cost of food, transportation, and lodging. Similarly, the maternity rider provides coverage for the costs of pregnancy, childbirth, and newborn care. The personal accident rider provides a lump sum benefit to the policyholder if he suffers from a total/partial disability or dies in an accident. In case of accidental death, the lump sum benefit is paid to the family member/nominee of the policyholder

Riders at what stage
Experts say it is better to opt for as comprehensive health plan including riders as early in age as possible and as much as one can afford to pay. Apaar Kasliwal, executive director & COO, Policy Boss, says this is because at a younger age, body is relatively disease free, lifestyles diseases have not crept in and hence insurers are more open to giving wider and higher coverage, which may come with caveats at a later stage of life.

EXPAND YOUR PROTECTION PLAN

• Important riders include those for critical illness, hospital cash accidental injury and maternity coverage
• A critical illness rider will push up the premium by 10-20% while a hospital cash rider will increase it by 5-10%
• Riders can help you to reduce the waiting period, so that you get coverage for your pre-existing conditions sooner