The Buyt Desk
When the sum insured of your health insurance policy is relatively low, a top-up and super top-up health insurance plan are the rescuers to boost the plan.
In India, Medical insurance was not of importance to the majority of people. Even now, most of them do not completely secure their potential medical expenses but just get some policy for the heck of it. The policy may not cover everything needed. As health insurance policies have higher premiums, it can be financially challenging for many. For extra benefits over the current health insurance policy, one should pay very high premiums. What if one can get extra health care (insurance) benefits at nominal costs? Top up Health Insurance Plans are smarter ways to get extra cover without paying a huge amount.
Two types of top-up health insurance plans in India
Top-up plan: The basic top up insurance plan gives additional insurance coverage by upgrading the sum insured to a new agreed amount. As the expenses go beyond the deductible limit, the top-up comes to play. This happens only for one claim per year.
Super top-up plan: The super top-up plan also provides additional insurance coverage by upgrading the sum insured to a new agreed amount once the medical expenses exceed the deductible limit. This happens considering all the claims put together in a year.
What is top-up health insurance?
A top-up health insurance plan boosts the sum insured amount of current health insurance policy. Once the maximum claim amount is consumed, this plan provides additional financial coverage. The financial backup coverage of the main health insurance plan comes into picture on exhaustion of sum insured.
As per this policy, the existing primary health insurance plan envelops the medical expenses up to the sum insured and a top-up plan offers coverage after its exhaustion. The terms and conditions of the policy says the deductible amount is payable. In this plan, the deductible is applicable only on single hospitalization i.e., only one claim in a year.
What is Super top-up health insurance?
Super top-up plan boosts the health insurance sum insured and gives additional coverage to health expenses. It is similar to top-up plans but considers the total medical expenses incurred in the year unlike per claim basis in basic top-up plan. This plan activates when the total of all claims during the policy year is above the threshold limit. In this plan also, the deductible amount is payable.
As per this policy, the primary health insurance policy takes care of medical costs up to the sum insured amount. The super top-up health insurance plan is activated after the sum insured amount is exhausted, here cumulative claim amount is considered. That is, the threshold limit is not evaluated for every claim/ hospitalization but the sum total of all hospitalization bills during the policy year.
What should you opt for?
It is suggested to go for a super top-up plan if there is risk of multiple hospitalizations in the policy year. Also people with chronic ailments should go for super top-up health insurance plans. The premiums for top-up plans are low compared to health insurances with higher sum insured.
As healthcare infrastructure and technology is advancing, medical treatments are also costing more. So it is important to make a good choice of health insurance so that all expenses are covered by the insurance. Top-up plans are the best as it provides a good financial safety net.
