Free quotes from top insurers with lowest premiums in
4 simple steps
*Please note that the quotes shown will be from our partners
*savings provided by insurer

A Walk-through of the Top-up Health Insurance Plans

Medical expenses are hiking up very fast. There are times when medical costs increase more than the inflation. Lifestyle-related diseases because of poor nutrition, inadequate sleep, lack of physical exercise, lots of stress etc. are increasing at a rapid speed. As lifestyle diseases are increasing, more and more people are getting hospitalized at frequent intervals. In such situations, it is absolutely necessary to have adequate health insurance coverage so that these hiking medical costs can be defeated.

Earlier, health insurance coverage worth Rs. 3 Lakhs used to be adequate for a family of four members. Now, it is considered as inadequate. Increased medical insurance cover can be an additional burden on your shoulders and not everyone can bear it. That is why a top-up health insurance cover is very convenient.

What is a Top-up Cover?

It is an add-on health insurance cover that provides you coverage over and above your original medical insurance coverage. For instance, if you have medical insurance cover of Rs. 3 Lakhs. To get additional coverage, you can buy a top-up health cover offered by the same insurance company. You buy a top-up cover of Rs. 4 Lakhs, and your deductible is Rs. 3 Lakhs. If you are hospitalized and your treatment expense is Rs. 5 Lakhs, the expenses of Rs. 3 Lakhs would be paid by your insurer. The remaining balance of Rs. 2 Lakhs would be paid by your top-up cover. 

Top-up Health Insurance Plans

What is a Deductible?

Before going any further, you should know what the meaning of the term ‘deductible’ is. A top-up cover comes with a specific cut-off amount that is called ‘deductible’. It implies that the top-up plan won’t provide you the coverage up to this specified limit. 

In the example mentioned above, if the top-up plan deductible was Rs. 3 Lakhs, the payment up to this limit would either have to be paid by the primary medical insurance or you would have to pay it from your own pocket. Expenses above this are eligible for being paid by the top-up plan. A lesser deductible in a top-up plan is recommended. But, one thing you have to keep in your mind is that if your deductible is lower, then your premium would be higher. It is very important to choose your top-up plan with utmost care so that the perfect balance between the adequate cover and adequate deductible is maintained.

How to Make the Best Usage of a Top-Up Plan?

Everybody who is planning to buy a top-up cover has this question in his mind. The ideal way to make the best usage of a top-up plan is to select the deductible very smartly. Generally, it is wise to go for a deductible that is equivalent to the sum assured provided by your primary medical insurance policy. In this way, the expenditure up to the deductible   

A top-up cover is very economical when it comes to enhancing your medical insurance coverage and it is nice if think that your existing coverage might not be adequate to meet any medical needs of your family.

What are the Benefits of a Top-up Cover?

Usually, a top-up cover is cheaper than having a full-fledged medical insurance cover. It is due to the deductible clause in an insurance plan. A top up cover can offer various benefits in case of high hospitalization expenses. A top-up cover is ideal for the health insurance buyers who don’t wish to spend much on the premium. 

In the example mentioned above, in the absence of top-up cover, the expenses were Rs. 5 Lakhs. In this case, only Rs. 3 Lakhs will be paid by your primary insurance. The remaining balance of Rs. 2 Lakhs you would have to pay from your own pocket.

You may like to Read: Benefits of Having Multiple Health Insurance Plans

What are the Drawbacks of the Top-Up Insurance Plan?

Though having a top-up is very beneficial, you have to be aware of the clauses related to the deductibles very carefully. You don’t get any benefit up to the deductible limitation that has been opted for by you. In case of multiple hospitalizations, these plans generally don’t work. To combat this drawback, you can go for super top-up plans.

You May Also Like
  • Top 10 Health Insurance Companies in India

    Every year, Insurance Regulatory and Development Authority of India (IRDA) announces a list of health insurance companies. There are few important features that help it to rate the insurance companies, such as their perf...

    read more
  • Top 5 Maternity Insurance Plans

    Maternity or pregnancy is an important phase of life, and one needs to prepare in advance to embrace parenthood. Though rearing a child is an expensive affair and may require good financial backup to meet the requirement...

    read more
  • List of Health Insurance Companies in India

    A quiet revolution has swept through India’s health care sector in the past five years- best evidenced in the fact that now nearly 27% of the nation’s population is insured. The Indian healthcare sector is projected ...

    read more
  • Top 8 Family Health Insurance Policies for 2019

    From the air we breathe to the food we eat, everything is intentionally or unintentionally subjected to adulteration. Due to this, the disease rate in India is rising drastically. Naturally, more and more people are visi...

    read more
  • Health Insurance Claims Ratio- Things You Should Look Before Buying Health Insurance

    There has always been a doubt in customers mind about whether the private company will keep its side of the bargain i.e. it will settle the claim or not. A customer spends premium annually which will cover his medical ex...

    read more

Search

Sign up for newsletter

Sign up our newsletter and get email about health plans.