Top-up health insurance is a plan that works to increase your general health insurance cover, that is, through it you are provided cover in addition to your normal cover. The top-up health plan allows policyholders to increase the limit of their existing plan. The top-up scheme has proved to be a boon for those who require regular treatment. Simply put, a top-up health insurance plan provides additional insurance coverage after the basic limit of the general plan. It is also very important for those whose health insurance coverage is not sufficient to meet their health needs. Therefore, information related to top-up health insurance is being given through this article.
Why do you need a top-up plan?
You may need a top-up plan due to the following scenarios –
- When your general health insurance plan is not providing you adequate protection, in such a situation a top-up plan increases the insurance cover and helps the insurers to get good coverage.
- When you want to increase your policy cover by paying the minimum price. Premium fees for top-up plans are cheaper than traditional health insurance plans. It provides the facility to increase the coverage while saving extra money.
Types of top-up schemes
Top-up schemes are available in two categories, which are –
Regular top-up plan
The top-up health insurance plan is referred to as a plan that facilitates you to get additional cover on your health insurance plan. Top-up plans have lower premiums. It provides you with a protective cover in case you exceed the limit of your insurance plan. When you have a major illness, you have to go to many hospitals for its examination and treatment, or when you have a pre-existing disease, then it needs regular treatment, then in such a situation you can Top-ups can opt for health insurance plans to increase existing insurance coverage.
Super top-up plan
The top-up plan has some drawbacks, which can be overcome by purchasing a super top-up plan. When your regular health insurance plan’s coverage limit is exceeded, a top-up plan only pays hospital bills, while a super top-up plan provides coverage that exceeds the maximum coverage limit. In simple words, you can make many claims in the super top-up scheme as compared to the top-up scheme, whereas such benefits are not given in the top-up plan.
Key facts of the top-up plan
Below are some facts about the top-up scheme, which you should know about –
Buying Top-Up Plan – Top-up plans are being offered by various insurance companies. You can buy it from your current insurer or any other insurance provider. You can buy top-up plan online as well as offline.
Eligibility You have to follow the minimum and maximum age criteria while purchasing the top-up plan. You can buy a top-up plan between 18 and 80 years.
Deductible amount – When purchasing a top-up plan you have to choose the deductible amount. You have to pay this amount out of your pocket at the time of any medical emergency. The rest will be paid by your insurer according to the terms and conditions of the policy.
Premium and Sum Insured – The premium amount is evaluated on the basis of the sum assured, the age of the customer and the deductible amount. When the premium amount is high, the deductible amount is less.
Pre-Policy Medical Test Customers of these schemes do not have to undergo pre-policy medical tests till the age of 45 years. It is mandatory for all customers above this age to undergo pre-policy medical examination. This age criterion may vary among different insurance companies.
Tips for choosing the right plan
- As already mentioned, the deductible amount (the amount you pay) determines the premium you pay for the policy. So you should not choose any random amount as a deduction, because it is the amount you have to bear yourself in times of medical emergencies.
- There are some drawbacks of top-up schemes. In case of treatment in many hospitals in a year, the top-up scheme only pays more than the deductible amount. So if the limit expires, you have to live without any cover.
- You should choose a top-up plan only after evaluating factors such as day-care coverage, cover for pre-existing disease and pre and post hospitalization coverage.
- The top-up scheme provides tax benefits under Section 80C of the Income Tax Act, 1961.