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Why Having a Top-Up Health Insurance Plan is Important?

Why Having a Top-Up Health Insurance Plan is Important''

A top-up health insurance plan is an additional health insurance policy that provides coverage in addition to your primary health insurance plan. For example, suppose you have Rs. 4 lakh health insurance policy. To obtain additional coverage, you can now purchase a top-up policy from the same or another health insurance carrier. You may purchase an extra Rs. 3 lakhs of top-up protection, and your deductibles are Rs. 4 lakhs. As a result, if you are hospitalized and your treatment costs Rs. 5 lakhs, your base health plan will cover Rs. 4 lakhs, while your top-up health plan will cover the remaining Rs. 1 lakh.

A top-up insurance plan has a specified cut-off value known as the “Deductible.” This implies that the top-up cover will not provide coverage up to this amount.

How does Top-Up Health Insurance Plan work?

A super top plan, as the name implies, is additional coverage that operates on the concept of policy deductible, which is the predetermined amount that an individual would suffer via his finances or any other insurance. For example, suppose an individual purchases an amount insured of Rs. 6 lakhs with a deductible of Rs. 2 lakhs. The insured will then bear 2 lakhs, while the insurer would bear 6 lakhs over the deductible of 2 lakhs during the policy’s duration, subject to policy terms and conditions. This function allows you to relax about the deductible that you can afford with the desired sum covered.

What is included in the Top-Up Health Insurance Plan?

  • Hospitalization expenses: If a person is hospitalized for in-patient treatment for a minimum of 24 consecutive hours, it offers the following benefits, including coverage for room costs, critical care unit charges, and operating room charges.
  • Pre-hospitalization and post-hospitalization medical expenditures: This plan covers pre-hospitalization charges such as testing, examinations, and medications. Medical expenditures incurred during consultations, therapy, and follow-up visits are included in post-hospitalization charges. These costs are covered by the plan.
  • Cashless treatment: With this option, an individual does not have to worry about paying hospital costs and then making claims for reimbursement. Individuals must be admitted to one of the network hospitals and focus only on recovery. A person does not need to be concerned about money. All expenditures will be covered by the insurance company.
  • It protects all members of the family: This provision protects all immediate family members for the sum covered under a single policy.

Important things about Top-Up Health Insurance Plan

  • Increased health cover: The Covid has demonstrated that medical expenditures are not cheap. The average cost of hospitalization for treating the pandemic may range between Rs 10-15 lakh. In such a situation, it is reasonable to ask whether you have enough health coverage and whether you should expand it. A top-up health plan or a super top-up plan is one option to expand your coverage.
  • A top-up health plan provides additional coverage at a cheaper rate to those who already have a health insurance policy. Super top-up health insurance policies also offer additional coverage, usually in addition to the base hospitalization policy.
  • Deductible Limit: It is the limit that has been pre-determined and is listed in the schedule. The top-up plan kicks in only when the cost of a single illness exceeds the deductible level.
  • A super top plan comes in handy when a single claim does not exceed the insurance cover’s threshold limit but numerous claims do. It extends health insurance coverage above the threshold limit in the event of repeated claims or hospitalizations throughout the year. Super top-up insurance adds up all hospitalization claims to determine the deductible limit.
  • Cost-Effective: The higher the deductible, the lower the cost of the top-up plan. The premium price for a super top-up is cost-effective owing to the threshold restrictions of the standard hospitalization plan’s cover.

Top-up health plans are intended to supplement current policies by covering actual healthcare expenditures without duplicating coverage while keeping rates reasonable. Super top-up plans are another excellent solution for increasing hospitalization coverage. They can be claimed for any sickness that exceeds the deductible amount for the whole year. Both are useful if your medical expenditures surpass the amount covered by your insurance policy’s base limit.

Readers are advised not to rely on the contents of the article as conclusive and should research further or consult an expert in this regard. This article is issued in the general public interest and meant for general information purposes only.

 

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Written by Hardik Tokas

Hardik Tokas is a law graduate from GGSIPU, Delhi. He is an analytical thinker, an active team player who is proactive in legal research and writing, and has highly motivated enthusiasm for business, start-ups, and entrepreneurship. He has the vision to deliver excellent support to the visionary entrepreneurs and educate them in all legal compliances of applicable laws considering their business level and long term growth. He is a goal-oriented professional and a valuable member of the organization.

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