How To Avail Top-Up Plans To Extend Your Health Insurance Coverage?

People are striving hard to lead a healthy lifestyle today. Looking at the rising medical bills, it seems that once you get hospitalized for some reason, the expenses required for treatment can put a hole in your pocket. The thought of this might scare you if you do not have enough savings. However, what if we tell you that you can keep your savings intact as there is a better way to combat this situation, i.e. by purchasing health insurance plans for yourself and your close ones.

Health insurance plans are of great help unless you require an amount higher than the sum insured for the treatment. In this case, you might have to pour in the extra amount yourself, which could be stressful. However, general insurance companies have got you covered on this one as well. They provide something called as ‘top-up plans’ that can be availed in case your normal health insurance plan falls short.

A normal health insurance plan will provide coverage for the sum insured while the remaining cost will be borne by the top-up plan. For example, if you have a health plan with a  sum assured of Rs. 1 lakh, but the hospital bill came out to Rs. 2 lakh, the extra Rs. 1 lakh would be paid for under the top-up plan. This is supposed to be an additional cover and can be bought by people who already have a health insurance policy.

People who receive mediclaim from their employer can also purchase a top-up plan to enhance their coverage because the former might not always be sufficient.

Top-up Plan or a Separate Health Insurance?

People think that buying a new health insurance policy rather than opting for a top-up plan is a better option. On the contrary, the premium to be paid on top-up plans is cheaper compared to buying a separate health insurance policy. However, the benefits that you would receive under both top-up and regular health insurance plans would be the same.

Top-up plans can be bought independently to enhance your existing plan. Also, you are eligible to receive tax benefits on the same.

The deductibles for top-up plans are higher, which means the plan is cheaper and, hence, covers only a single hospitalization. As such, in case you get hospitalized twice in one year with a deductible of Rs. 5 lakh and the bills amount to Rs. 4 lakh each, your top-up plan won’t be triggered. Also, if you have a family plan and two members are hospitalized under that cover with bills of Rs. 4.5 lakh each, again your top-up plan won’t be useful. The bill amount would have to be over Rs. 5 lakh for the top-up plan to be triggered.

Instead, you can opt for a super top-up plan that provides coverage for two or more hospitalizations in case of an insurance claim. However, the premium payable for this would be higher.

In either case, the deductible must be crossed to avail the benefits of the top-up plan.

In simple words, you need not worry about purchasing an entirely different health insurance policy if you feel that your insurance plan is not enough.

For your convenience, insurance companies have come up with top-up plans that allow you to extend your existing policy and ensure that you receive adequate coverage. Now, you can even purchase a top-up plan in a few clicks online simply by visiting your insurer’s website.

Leave a Response