Five Tips on Making the Most of Health Policy Top-Up Plans
It is rightly said, ‘Health is Wealth.’ In the modern age and time, we are constantly running to earn money, become a wealthy person and lead a satisfied lifestyle. But, in this race to fulfill our dreams and desires, we unintentionally ignore or neglect our health and well-being. This lack of attention often takes a toll on our body and health. Eventually, we find ourselves trapped in a loop of various diseases. With diseases, come tensions of cure and finances. Thus, in order to avoid the stress of medical care and well-being, many people have moved towards buying a health policy for their family and themselves.
A Health Insurance in India is insurance policy that protects you from the unforeseen medical treatment costs that you or your family might need it the future. Health insurance in India is offered by almost all the insurance companies and ensures a cashless medical treatment or reimbursement of the medical expenses incurred by you when you fall sick/ill. It also provides repayment facilities in case of surgeries, contraction of normal diseases, or anything that leads to hospitalization and costs your pockets.
Health Insurance in India is available in different types such as personal health insurance, family health insurance, child health insurance, senior citizen health insurance and more. These varieties depend of various factors such as age of the insured, sum insured, the features and benefits attached to it and so on. Usually, the tenure of a health insurance policy is set for one year, but you can buy a health insurance policy for two to three years also, depending on your budget and requirements. Buying a health insurance plan may add to your regular monthly budget, but it will only prove to be beneficial in the long run as there is no certainty of anything in this modern life. A health insurance in India provides you the appropriate help, support and assistance you require in times of medical emergencies and also in case of pre-planned medical expenses, thus allowing you to lead a stress-free and peaceful life.
A Health Insurance in India looks after the whole hospitalization costs that are incurred by the policy holder, up to the maximum amount that is insured and also within the terms and conditions of the insurance policy. Each health insurance policy offered by different insurance companies, generally provides, coverage for both pre and post hospitalization costs. You can also avail cashless medical treatment facilities by the vast network of hospitals and your insurance company will settle all the dues. As such, you can get medical care and treatment immediately without wasting time for managing the required funds.
Advantages of Health Insurance in India
Buying a health insurance plan is not an option anymore considering the fast paced life. It is more of a requirement and compulsion. Below are some features of health insurance policies that provides umpteen benefits
- Health Protection: The first and foremost advantage of a health insurance in India is safeguarding your body and health. A Health insurance plan is not only savior when you need to pay back your hospital debts. But many insurance plans offer medical cum health check-up and counseling facilities. A number of people think counseling sessions are important to be peaceful both mentally and emotionally, and as such what better than if you get this absolutely free along with additional coverage’s under a health insurance
- Proper use of Savings: It is often assumed that health insurance is merely a burden on the household budget. You save money from your monthly salary and sometimes even cut down costs in order to pay the health insurance premiums every year. It may make you feel like a waste of money, as you may not require the health insurance benefits every year. But in case you fall seriously ill and are hospitalized, the costs are going to seem more burdensome that the meager payments of premiums. At that point of time, when the need is the most, a health insurance policy will become your savior and you will be able to get a proper treatment without worrying for expenses.
- Increasing health costs covered: The technological advancements have helped us getting better facilities and treatments but have also simultaneously made getting treatments costlier. If you wish to get the best of medical care facilities, now you will have to shell in more from your pockets. However, if you have invested your money in buying a health insurance plan with a good amount of sum insured, then getting a proper medical treatment is not out of your league. Your insurance company will help you get the best medical care and will take care of the expenses, irrespective of your financial conditions then
- Credit Source: You make not have enough cash either at hand or even in your bank all the time to tackle medical emergencies all the time. As such, a health insurance plan helps you get some more time during your tenure of hospitalization to settle your dues. It may be possible that at the beginning you will have to make the payments on your own, depending on the company policy, but you will assuredly get the money back when your insurance company settles your claim.
- Monetary Aid in Times of Urgencies: In times of medical emergencies, the cashless treatment facility provided by the insurance companies aids you in getting the required medical treatments in time. You will not have to face delays and wait until you collect enough cash, it will be taken care by the insurer.
- No Claim Bonus: As mentioned above, you may not claim your medical insurance benefits every year. This will not go in vain, as if you have not claimed any help during the year; you will receive a no claim bonus by the insurance company in the following year. This will add up to all the bonuses that you have earned within the year, thus making it a profitable deal for you and boost your sum insured.
- Top-Up Plan Benefits: Top up plans are like additional covers, you can avail this facility and settle your remaining dues with the hospital, once your initial benefit from the basic sum insured stands exhausted. To put it simply, a top up plan helps you to get additional benefits along with your actual insurance coverage; all you need is to just pay some extra premium to avail these benefits. It is better to buy top-up plans offered by health insurance companies for extra benefits rather than involving yourself in complicated processes of buying a new insurance policy
- Critical Illness Rider: A health insurance policy provides coverage against critical medical sicknesses like cancer, heart-attack, paralysis, kidney disorders, diabetes, and many other that require heavy on-going treatments. Most of the health insurance plan provides protection against critical illnesses and free the insured from the stress of heavy payments. It helps financial aid from the start only when the person is found to have acquired any such sickness. But, to acquire its benefits, you will have to pay some extra premium.
Top up Plans Health Insurance in India
As the name suggests, a Top-up health insurance plan, is an additional coverage attached to your original health insurance policy. It essentially provides additional coverage at low premium rates, above the available insurance limit. A top up health insurance plan can be regarded as a safety measure that comes to your aid in case you have already spent more than your insurance policy limitations. When you buy a basic personal health insurance plan, you are assured to a certain fixed amount. But, due to the increasing medical costs, it might happen that you exceed the assured amount. In such a situation, a top-up plan will be your ultimate savior.
For instance, Mr. X has a health insurance cover with total sum insured of Rs 10 lakhs. He duly pays a premium every year amounting to Rs. 24,000. In an unfortunate and sudden incident, he had to be admitted to the hospital due to a cardiac arrest, and the costs of the medical care in the hospital shot up to Rs 15 lakh. The insurance company will provide financial aid up to a limit of 10 lakh, in normal situations, and the additional expenses would have to be borne by Mr. X and his family. However, if Mr. X would have initially decided to choose a Top-up Health Insurance policy of Rs 15 lakh having a deductible limit of Rs 10 lakh, this extra expenses incurred during the treatment will looked after the insurance company within the deductible limit. This ensures complete financial protection under serious and unavoidable circumstances.
Simply, a Top-up health insurance plan covers you after you have exceeded/exhausted the basic financial help that is provided under a normal health insurance plan.
Some insurance companies also provide facilities of Super Top up health insurance plan. This particular plan, allows a policy holder to avail multiple claims that a regular top up plan doesn’t provide. It provides protection above the actual policy limit in many cases.
But deciding when to opt for a top up health insurance plan is the real question. A policy holder can think of buying a top up plan in two situations.
- In case the normal health insurance plan does not provide appropriate and sufficient safeguard to meet your needs. As such, a top up plan will help you to make your health insurance policy better and stronger.
- If you want to increase your protection coverage under the same policy without incurring more costs of higher premiums. The premium rates of top up plans are comparatively lower than that of a new normal policy offering similar benefits. It will not only save your money, but will also save your time, as you will not have to waste more time searching for a new plan and completing the formalities again.
Key factors to consider before buying a top-up health insurance plan
Though top-up plans provide immense benefits, and it is a wise choice in today’s uncertain world. They are the complimentary provisions that act as a protective shield for the policy holder in times of ultimate need. There are a few factors you should keep in mind before you decide to invest your hard-earned money in one. Following are some key tips that will help you in making an informed decision.
- Analyze the Costs - Before buying a top up plan, it is essential that you calculate the premiums and compare it with the benefits offered. It is also advisable that you compare the benefits and premiums of top-up plans to that of new health insurance policies. If you feel that the former is feasible and covers all your needs, don’t wait complete the procedure as soon as possible.
- Deductibility - Deductibility implies the amount that is offered by the insurance company as financial aid when you exceed the actual insurance policy coverage amount. Every top up plan has a certain fixed deductible amount, which cannot be increased as per needs. So before you finalize a top up plan, make sure the deductible amount suits your need.
- Base Policy - A base plan refers to the actual/initial health insurance policy. Though it is not compulsory that the person should have a base health policy to get the benefits of the top-up health insurance plans, it is advisable that a sufficient base health insurance plan is intact to provide adequate coverage for costs incurred below the deductible amount.
- Low Premium Rates - You can avail a top-up facility under a health insurance at low premium rates as compared to a newer plan. However, the premium depends up on the deductible amount. The higher the deductible amount the higher the premium rate. So choose wisely, as you are going to invest more from your pocket to get the additional facilities.
- Be Linked to a Single Insurance Company - The most important advantage of getting a top-up plan over a new policy is that you will be attached to a single insurance company. If you already have an insurance policy with a particular insurance and decide to avail the top up facility, the trust factor will be more because of the long association between you and your insurer. Also, it helps you waive off the pre-existing disease waiting period, which is an added advantage and you will not have to waste more time for getting it registered. Your continuity In PED waiting under top-ups comes handy.
These are certain tips that may help you while choosing the best option for you. Remember, do not compromise on health insurance plans as wealth once lost can be regained but the same does not apply for your health.
Written By: PolicyBazaar - Updated: 15 February 2021