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Difference Between Riders and Add-on Covers in Health Insurance

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Published on July 17, 2023. EST READ TIME: 3 minutes

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A medical emergency can happen at any time and make things mentally and financially strenuous for you and your loved ones if you are not prepared for it. Even if you have a basic healthcare plan, it may not be adequate to meet all your medical needs. Keeping this in mind, health insurance companies offer different riders and add-on covers for policyholders who wish to enhance the coverage of their healthcare plan by paying an additional premium. The enhanced coverage can help you meet major medical expenses without burning a hole in your pocket. Although the terms riders and add-on covers in health insurance are often used interchangeably, they are different in terms of the coverage and the benefits they offer. Let’s understand what add-on covers, and riders are in health insurance and their differences.

What are Riders in Health Insurance?

Riders are additional benefits offered by insurance companies to policyholders who want to enhance their health insurance coverage. These riders promise better financial assistance during medical emergencies and help prevent financial setbacks.

You can check the riders offered by your insurance provider and choose the right ones keeping your health and family history in mind. However, you must pay an extra premium for every rider you take with your healthcare plan.

Some important riders in health insurance are:

• Hospital Cash Rider

Under the hospital daily cash rider, the policyholder receives a fixed daily cash allowance from the insurance company for a specific number of days. Most insurance companies offer this benefit in case of emergency hospitalisation.

• Out-patient Department Rider

This rider covers the out-patient department or OPD charges of the policyholder. The coverage may include doctor’s consultation fee, cost of diagnostic tests, pharmacy bills, etc.

• Air Ambulance Rider

An air ambulance rider can come in handy during medical emergencies when the injured must be quickly transported to the nearest hospital in an aeroplane or helicopter. Since air ambulance charges are on the higher side, having this rider handy can help cover the bills.

• Room Rent Waiver Rider

This rider helps remove the cap on the room rent. With a room rent waiver rider handy, you can opt for a better and more comfortable room in the hospital without worrying about the charges.

What are Add-on Covers in Health Insurance?

Add-on covers are like top-up plans that policyholders can take to make their healthcare plans more comprehensive. The add-on covers differ from insurer to insurer, so you can check with your insurance provider about the ones they offer and choose the suitable ones accordingly. Since these covers increase the coverage of a healthcare plan, you must pay an additional premium for every add-on cover you take.

Some examples of add-on covers in health insurance are:

• Critical Illness Cover

This health insurance cover provides financial security against a range of life-threatening diseases, such as cancer, kidney failure, heart attack, paralysis and stroke. The cost of treating a critical illness can run to several lakhs and eat up all your savings in no time. With a critical illness cover handy, you can opt for quality and timely treatment without worrying about the bills.

• Personal Accident Cover

In case you meet with an accident and sustain severe injuries, personal accident cover can help you meet your hospital bills. This way, you can concentrate on your treatment and recovery rather than fretting about your medical expenses.

• Maternity Cover

Opting for maternity cover as an add-on takes care of all pregnancy-related expenses. This includes expenses incurred during pregnancy, hospitalisation and delivery, both normal and caesarean.

Riders and Add-on Covers – Differences

Categories	Add-on Covers in Health Insurance	Riders in Health Insurance
Definition	As the name suggests, add-on covers are additional features that you can take with your existing healthcare plan by paying nominal premiums for every add-on you purchase.	Health insurance riders can enhance your policy coverage and offer better financial protection during medical emergencies. Riders can help increase the benefits of your healthcare plan and save you from the hassles of buying another health insurance policy offering the coverage you require.
Purchase options	You can purchase add-on covers with existing as well as a new insurance company.	You can purchase health insurance riders only from your existing insurance provider.
Policy document	If you take one or more add-on covers, your insurance company will issue a separate policy document.	No separate policy document is required for health insurance riders.
Availability	Add-on covers are available with a few health insurance policies only.	Riders are available with most health insurance plans.

These are the main differences between add-on covers and riders in health insurance. You can buy these additional benefits when purchasing or renewing your healthcare plan.

One of the most important benefits of both these options is that they enhance the coverage of your healthcare plan with a nominal increase in the premium amount. So, you can choose suitable add-ons and riders as per your healthcare requirements and budget and stay covered against a range of medical expenses. These benefits can save you from purchasing a separate policy to cover the additional expenses.

Conclusion

Riders and add-on covers in health insurance are important benefits that allow policyholders to personalise their healthcare plans for better coverage. If you feel your basic health insurance coverage is insufficient for meeting the ever-increasing healthcare costs, you can choose the right add-on covers or riders in health insurance and stay covered.

Disclaimer : The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales

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• What is the Difference between Critical Illness Rider and Standalone Critical Illness Plan?

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