Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

What Is the Restoration Benefit in Health Insurance Plan?

A restoration benefit is a feature of health insurance that effectively restores your health cover back to the original amount in the same year if you exhaust it. Visit to know more!

  • Dec 16, 2021

What Is the Restoration Benefit in Health Insurance?

When you are planning to buy health insurance, you may come across many terms related to the features and benefits of a health insurance plan. It is crucial to understand how all the features of a health insurance policy work to make the most of the policy. You don’t want to be in a situation where your health claim is not approved because you misunderstood the features. One such term that is thrown around a lot by insurance companies is the restoration benefit. 

Let us understand what a restoration benefit is and how it works as an excellent health insurance benefit.

What is the restoration benefit?

When you buy health insurance, you are offered a sum insured in a given year. This means that if you have medical expenses covered under your policy, you will be paid only up to the coverage amount. So, if you have a policy with Rs. 5 lakh coverage, you can claim your policy for medical costs amounting to only this amount. 

A restoration benefit is a feature of health insurance that effectively restores your health cover back to the original amount in the same year if you exhaust it. If you make multiple claims on your health insurance policy in the same year and use up your coverage amount, a restoration benefit will restore your health cover again. 

For example, let us assume you bought a health policy with a cover of Rs. 5 lakhs with a restoration benefit according to the terms of the policy. You made a claim for Rs. 3 lakhs initially for treatment cost that was fulfilled by the policy. Unfortunately, you had to undergo a second treatment amounting to Rs. 2 lakhs in the same year, which was also fulfilled by your policy. Now your policy cover is exhausted, and hence it will be restored to Rs. 5 lakhs for the same year due to the restoration benefit. However, the restoration benefit cannot be used for the same treatments claimed earlier in the year.   

How does a restoration benefit help?

A restoration benefit is most helpful if you have bought a family floater health insurance plan for your entire family. In case you’re in a situation where a family member requires treatment, the chances are that you will end up exhausting your health coverage amount. If another family member requires treatment in the same year, your policy won’t be able to cover it due to exhaustion of the limit. However, if your family floater policy had a restoration benefit, your health cover would be restored after exhaustion, and you can still use your policy in the same year. 


Thus, a restoration benefit can come in handy if you make multiple health claims in a given year on your policy. Do note that a restoration benefit can only be used once during the policy tenure, and it is only provided on complete exhaustion of your insured sum. You can make the most of a restoration benefit, especially if you have a family floater health insurance plan. 

Kotak e-Term

Download Brochure


  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Seven Preventive Measures for Heart Related Illness

Health Insurance with or Without Medical Tests? Which is Better

What is International Health Insurance? Meaning, Importance and Benefits

6 Common Myths about Health Insurance

10 Effects of Fast Food on Your Body

What is Single Premium in Health Insurance?

Is Cataract Surgery Covered under Health Insurance in India?

7 Things to Audit in Your Health Insurance Plan

How to Choose a Right Health Insurance Plan?

List of Critical Illnesses Covered in Health and Life Insurance Plans

What are Health Insurance Premiums? How are they Calculated?

Health Insurance Plan for Heart – What you Should Know on Symptoms and Diagnosis of Heart-Related Disease?

Health Insurance Plan for Family

A Millennial’s Guide to Buying Health Insurance

How do I Choose a good Health Insurance Plan?

Choosing Health Insurance for Senior Citizens

Which Health Insurance Plans Cover Your Family Members?

Health Insurance for Personal Accidents

Health Insurance for Brain Tumour: What You Should Know on Symptoms & Diagnosis of Brain Tumour

What is Telemedicine? How to Seek Medical Treatment Remotely?

What is the Persistency Ratio and Why Does it Matter to the Health Insurance Sector?

Critical Illness Can Disrupt Family's Financial Goals and How Health Insurance Can be Useful

Critical Illness Insurance for Alzheimer's Disease

Why is Cardiac Care Plan a boon for Heart Patients?

Things to keep in mind before buying a health insurance plan for diabetics

What are the Documents Required for Buying a Health Insurance Plan?

Tips to Reduce Your Health Insurance Premium

How Much Of Health Insurance Is Tax Deductible?

Heart and Cancer Insurance

Health Insurance for Students Who Study Abroad

How To Choose A Good Health Insurance Plan?

Health Insurance Plan for Cancer: What You Should Know on Symptoms and Diagnosis of Cancer

Why Your Health Insurance Cover Could be Insufficient?

5 Reasons to Own Both Health Insurance and Term Insurance

Guide on Fraudulent Health Insurance Claims in India

Health Insurance Plans for a Pre Existing Condition

How to Transfer Your Health Insurance Cover Without Losing Benefits?

What is Health Insurance and Why do You Need it?

5 Reasons to Consider Investing in Health Care

Saving Tax on Your Health Insurance

Rashtriya Swasthya Bima Yojana: Eligibility, Coverage, Benefits

Top Five Institutes for Free Cancer Treatments in India

What is the Difference Between a Mediclaim Policy, Health Insurance and Term Insurance?

How to Switch to A Different Health Insurance Company?

Why You Must Disclose Your Pre-Existing Conditions While Buying Health Insurance?

5 things to consider while renewing a health insurance policy

Key Factors that Decide Your Eligibility for Buying Health Insurance Plans

How to File Health Insurance Claims?

Why You Must Disclose Your Pre-Existing Conditions When You Buy Health Insurance

Everything You Need to Know About Health Insurance for Parents

Why Opting for Short Term Health Insurance Plans is a Wise Idea?

Are You Covered for the Home Treatment Cost Under Your Health Insurance Policy?

Difference Between Open Heart and Bypass Surgery

Section 80D: Everything You Need to About Income Tax Deduction for Medical Expenditure

Buying Health Insurance with A Pre-Existing Illness? Things You Should Know

What is OPD Cover in Health Insurance?

How Is Your Health Insurance Premium Affected By Age?

What is BMI Calculator, and why is it Important?

Health Insurance for Liver: What You Should Know About the Symptoms and Diagnosis of Liver Problems

Health Insurance Coverage for HIV Patients

Why Should You Opt for Cancer Insurance?

What Is the Restoration Benefit in Health Insurance?

Why do Patients with Hypertension Need Health Insurance?

What do Health Insurance Plans Cover?

Stress and Heart Health: 4 Things You Should Know

Healthy Habits to Avoid Falling Sick During Monsoon

Why You Must Review Your Health Insurance Policy/ Plan Every Year?

Everything You Need to Know About Accidental Insurance Policy

What is the Right Age to Buy Health Insurance Policy?

Do Add-On For Health Insurance Policies Really Add Value?

What Does Health Insurance Not Cover?

What Medical Expenses Can You Claim in Health Insurance Plans?

Everything You Need to Know About the Ayushman Bharat Health Insurance Scheme

10 Preventative Measures for Diabetes

Protect Your Family with Health Insurance Today

Benefits of Health Insurance You May Not Know About

Which One is Better: Mediclaim or Health Insurance?

Steps to Appeal A Health Insurance Claim Denial

Key Difference between Health Insurance and Mediclaim Policy

Is Health Insurance Non-taxable?

Why You Must Review Your Health Insurance Plan Every Year

Factors to Consider While Choosing a Health Insurance Plan for Your Parents

Is Health Insurance the Same as Medical Insurance?

All You Need To Know About No-Claim Bonus In Health Insurance

How Much Should I be Paying for Health Insurance?

What is Disability Insurance?

The Importance of a Health Insurance Claim Ratio

Why You Need to Know About the Critical Illness Plan?

Tax Benefits on Health Insurance Plans

Health Insurance Coverage: Day Care Treatment Vs OPD Treatment

How is Health Insurance Cost Calculated?

How Your Eating Habits Affect Your Health & How to Change Them

7 Reason Why Should You Buy a Health Insurance Plan in Your 20s?

How to Claim Tax Benefits on Medical Insurance Premium?

Types of Health Insurance You Must Know About

Basics of Health Insurance

How Much Health Insurance Cover Should You Opt For?

Does Critical Illness Insurance Cover Stroke?

How wellness benefits can help reduce your health insurance premium

5 Reasons to Buy Health Insurance in 2021