Why should you buy a health insurance with reset benefit?

As health care costs are rising at an unprecedented rate, a single medical crisis is enough to make you realise that your health cover is not sufficient. Moreover, when you cross the mark of 40, you may start experiencing medical conditions that eluded your younger self. That’s when your insurance coverage may look meager, especially if you had bought the policy a few years ago, and haven’t expanded your coverage since.

As most health insurance companies are aware of this fact, they have come up with a reset or refill benefit.

As per this feature, the basic cover gets automatically reinstated if you exhaust the entire sum insured during the policy tenure. For instance, you have a health insurance policy that offers Rs 10 lakhs coverage. During the policy tenure, you fall ill, and there is a claim of Rs 10 lakhs, which the insurer settles. In a few months, another claim of Rs 5 lakhs arises. In a regular mediclaim policy, you would be required to pay the entire amount from your pocket. However, if your policy comes with a restore feature, the insurer will reset your sum insured after the first claim. Which essentially means that your insurer will cover the second claim as well.

Here is an illustrative example:

Reset Benefit Example
Sum Insured	Cases	Scenario 1	Scenario 2
	Sum Insured	Rs 8,00,000	Rs 8,00,000
1st Claim	Reason	Accident	Malaria
	First Claim Amount	Rs 5,00,000	Rs 3,00,000
	Remaining Sum Insured	Rs 3,00,000	Rs 5,00,000
2nd Claim	Reason	Heart Attack	Cancer
	Second Claim Amount	Rs 5,00,000	Rs 4,00,000
	Will the reset feature trigger?	Yes, sum insured will reset to Rs 8 lakhs as the available sum insured is not enough to settle the claim which is for an unrelated ailment	No, since the available sum insured is sufficient to pay the claim