Top-Up Health Insurance Policy: Health insurance policy has become a necessity today due to rising health expenses. However, if its coverage is less then the benefit is less. In such a situation, the top-up health insurance policy is a supplemental health insurance plan which not only increases the coverage but the premium is also affordable.
However, before taking top-up health plans it is very important to understand something as if it has two parts – one is insured and the other is the deductible limit. When the claim exceeds the deductible limit, the insurance company pays the increased claim.
For example, suppose you bought a top-up plan whose sum insured is Rs 5 lakh and deductible is Rs 2 lakh. In this case, if the claim amount increases by more than Rs 2 lakh, then the increased claim will be covered under the top-up policy.
This is how top-health cover works
According to Dhirendra Mahyavanshi, co-founder of Turtlemint, an insurance tech company, the top-up policy works better with any current health insurance plan that you have taken. You can buy a top-up policy whose deductible is equal to the sum insured of the base policy. In this way, the claim up to the deductible will be done through the original health insurance plan and the enhanced claim will be covered under the top-up plan.
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There are two types of top-up policy
Top-up policies are available in two variants; Top-up and super top-up. Under the top-up plan, all claims are tapped against the deductible limit and if the claim exceeds the deductible limit then the increased claim will be paid. On the other hand, in super top-up plans, all claims in a year are tapped with deductibles and if the aggregate claim is more than deductible, it will be paid.
Choose the best top-up plan like this
- Match the insurance to the deductible of the health plan you have.
- Choose optimal coverage.
- See coverage benefits to see what coverage includes.
- Look at the pre-existent waiting period and choose a plan that has a shorter period so that coverage is available at the earliest.
- Look at the coverage limits and sub-limits and choose a plan that does not have restriction on coverage.
- Which hospitals can benefit under the plan, definitely check it out. Choose a plan that has more and more hospitals in the network.
Thus, understand how much savings will be made
According to Dhirendra Mahyavanshi, if you want more health insurance coverage without paying a higher premium, then a top-up policy is a better option. One can understand how effective it is with an example. Your age is 35 years and you have a plan of Rs 5 lakh, whose premium is 6 thousand 6 thousand – 8 thousand rupees. Now if you want to get health insurance cover of Rs 10 lakh, then you have two options.
- Case 1: You can increase your coverage plan to Rs 10 lakh, that is, you can take an insurance plan of Rs 10 lakh. In this case, you may have to pay a premium of up to 10 thousand -12 thousand rupees. In such a situation, to increase the coverage to Rs 5 lakh, an additional premium of 4 thousand rupees will have to be paid.
- Case 2: You can choose a super top-up plan of 5 lakhs, which is deductible of 5 lakhs. Since your current health insurance policy is 5 lakh, then the top-up plan should be such that the deductible is Rs 5 lakh. Its premium will be 1 thousand – 2 thousand rupees annually. In this way, for coverage of 10 lakh rupees, you will have to pay an additional Rs. 1 thousand – 2 thousand only. In this way, you can see that you can increase the coverage through top-up plan even at a low premium.
(Story-Rajiv Kumar)
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