Different Types of Riders in Health Insurance

A health insurance policy is one of the best ways to protect yourself from the ever-increasing medical costs. By passing off the bulk of your medical expenses over to your health insurance provider, you can significantly reduce the impact on your finances. However, not all health insurance policies may offer the kind of coverage you need. 

Sometimes, you may have to enhance the coverage of a plan to ensure that it meets your needs. Here’s where riders come into the picture. Riders can bridge the gap in the coverage of a health insurance policy. Continue reading to know all about riders in health insurance, how they work and the various types offered by insurers. 

What are Riders in Health Insurance? 

Riders are optional add-ons that you can opt for at the time of purchase of a health insurance policy. They can either enhance the coverage offered by a health insurance policy or provide coverage for conditions, treatments or situations that are not covered by the base plan. 

When you opt for a rider, you’re required to pay an additional premium over and above the premium for the base health insurance policy. However, most rider premiums tend to be very nominal since it has limited scope and generally only enhance the coverage and benefits of the base policy. 

What are the Different Types of Riders in Health Insurance? 

Now that you’ve seen what riders are, here’s an overview of some of the most common types of health insurance riders you can purchase in India. 

• Critical Illness Rider 

One of the most popular types of riders in health insurance, the critical illness rider is designed to provide you with a lump sum amount on the first diagnosis of a certain specified critical illness. Critical illness can be defined as any potentially life-threatening disease and includes cancer, heart attack, liver or renal failure or stroke, among others. 

You can use the lump sum amount provided by the rider to take care of expenses in connection with treating the critical illness or for surgical treatments. That said, the list of critical illnesses covered by this rider may vary depending on the health insurance provider you opt for. 

• Maternity Cover 

Generally, most health insurance policies don’t offer coverage for medical expenses in connection with childbirth and pregnancies. The maternity cover rider is designed to extend the insurance coverage to maternity-related medical costs. 

However, most health insurance providers that offer this rider have a waiting period clause. The maternity coverage will only become active after the expiry of the said waiting period, which can be anywhere from 9 months to a year. 

• OPD Rider 

One of the most useful types of riders in health insurance is the Out-Patient Department or OPD rider. Most health insurance policies only offer coverage for medical expenses that you incur when hospitalised. 

If you undergo a medical test or procedure without being hospitalised, the insurance policy will not cover the expenses. Instead, you will have to bear them out of your pocket. With the OPD rider, however, all OPD expenses including doctor’s consultation fees, diagnostic tests, minor procedures and medicines will be covered. 

• Room Rent Waiver

Although health insurance policies cover hospital room rent, they generally impose a certain per-day limit. For instance, a policy could limit the hospital room rent coverage to Rs. 2,500 per day. If you’re hospitalised in a room that costs Rs. 3,000 per day, you will have to cover the additional Rs. 500 each day out of pocket. 

In addition to this coverage limit, some policies also place restrictions on the type of hospital room that you can get admitted to. The room rent waiver rider is designed to lift such limits and restrictions related to your hospital stay. With the rider active, you can be hospitalised in any type of hospital room regardless of the rent.  

• Daily Cash Rider 

Another one of the many useful types of health insurance riders is the daily cash rider. Also known as hospital cash rider, it gives you a cash allowance for every day you’re hospitalised. You can use this daily cash allowance to pay for miscellaneous expenses you incur while hospitalised; expenses that are not covered by the base health insurance policy like food and medical consumables. However, keep in mind that you need to be hospitalised for more than 24 hours to be eligible for this rider benefit. 

• Global Cover Rider 

Typical health insurance policies only offer coverage against medical expenses you incur while undergoing treatment within India. These policies generally don’t cover the expenses in connection with medical treatments, whether emergency or not, done abroad. The global cover rider extends the coverage to medical expenses incurred outside India as well. If you’re a frequent international traveller, the rider can be very useful. 

• Reduction in Waiting Period Rider 

As you might already be aware, health insurance policies generally have waiting period clauses built in for pre-existing conditions. In either case, the medical expenses you incur for the treatment of pre-existing conditions and diseases will only be covered after the waiting period has expired. In some cases, the waiting period is just 30 days, whereas in others the waiting period may be much longer, extending to years. 

It may not always be practical or feasible to await the expiry of the waiting period to undergo treatment. Here’s where the reduction in waiting period riders can help. By opting for such a rider, you can effectively reduce the waiting period for certain or all pre-existing diseases and conditions. For instance, if the normal waiting period is 2 years for a particular pre-existing disease, you can reduce it to 1 year or 6 months with the rider. In some cases, you can even eliminate the waiting period entirely. 

Conclusion 

So, there you have it. These above-mentioned types of health insurance riders are some of the most common in India. Most health insurance providers offer these riders in addition to their base policies. 

That said, keep in mind that opting for more riders than what you need can significantly increase your premium and may even make it unaffordable. Therefore, when choosing riders, make sure to carefully examine their advantages to determine whether you need them. 

FAQs