Wellness Returns are becoming an important aspect of most health insurance policies nowadays. The basic objective of wellness returns features in a policy is to promote, incentivise, and reward policyholders for adopting healthy lifestyle practices. It is similar to reward points accumulated during shopping and these points can be redeemed as discounts at the time of policy renewal.
Let’s take a closer look:
How does it work?
An insurer that provides this feature will have a list of things to do that will give you certain points. For example, an insurer may say that if you walk 2,000 steps per day, you will earn 100 points, and each 100 points may be equal to Rs. 10. So, if you walk 2,000 steps each day for 30 days, you will have 3,000 points. These points will be equal to Rs. 300. So, when you go for the policy renewal, you can redeem Rs. 300 that you earned by walking everyday, and get a discount of Rs. 300 on your premium.
The insurer can also provide you with levels that you can complete. For example, walking 20 days per month could be level 1. Walking 20 days, and cycling 5 days, could be level 2. Or burning 500 calories per day could be level 3. For each level that you reach, the discounts may increase. For example, if you are at level 1, you may get a discount of 5%, on level 2 you may get a discount of 10%, and a level 3 person may get a discount of 15% on their premiums. This means that the more active and healthy lifestyle you lead, the more rewards you get.
There could also be specific rewards for certain activities. For example, the insurer can say that you earn 300 points for taking part in a marathon, or you get 500 points for taking part in a cross-country race. What it means is that the more effort you apply in keeping yourself fit, the more points you can get, and the more discounts you will have on your premiums.
How is it measured?
Insurance companies have developed their own health monitoring apps that you can use as well as tools like Health Risk Assessment (HRA) that can be downloaded on your phones. These apps have questionnaires, trackers, and health monitors that measure your activities like calories burned, steps walked, etc. The insurance company then rewards you points based on the measurements taken by the app.
There could be specific wellness rewards for specific diseases too. For example, if a person is overweight and needs to maintain their Body Mass Index (BMI) then the insurance company may provide a health expert who can monitor the policyholder’s developments. The insurer provides points if the policyholder is able to maintain a healthy BMI or improve on it.
Insurance companies that provide wellness returns may also offer health coaches for your benefit. For example, an insurer can provide free consultation with a health expert for their policyholders who can guide them in areas like fitness, nutrition, tobacco cessation, etc. These services are usually offered free of charge so that the policyholder can be encouraged to live a healthy life.
How does it help the insurer and the policyholder?
Wellness returns is a win-win feature for both the insurer and the policyholder. By adopting a healthy lifestyle, the policyholder remains protected from a number of diseases and also saves money on premiums. The insurer, on the other hand, benefits because there are fewer claims and lower expenses on the whole.
What should a policyholder be aware of?
These reward points vary from policy to policy and from one insurer to another. It is important to know and understand how these features apply before buying the policy and to be very clear about their terms and conditions before opting for one.
OneAssure is a distribution platform that helps you make right decisions on matters where health and finances converge. Visit oneassure.in to know more about your health insurance choices.