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Health Top-Up Insurance

What Is Health Top-Up Insurance?

28th July 2021 8min read 126 views

Have you ever come close to maxing out the sum insured on your health insurance policy? Sometimes the plan we have doesn’t offer adequate coverage, so we end up having to dip into our pockets to help pay off hospital bills. Wouldn’t it be nice to have a little more cover to help out when the going gets tough? If you’ve been wondering how to get additional cover, we have great news for you! You can boost your existing
health insurance coverage with a top-up health insurance policy!

What Is Health Top-Up Insurance?

As the name suggests, top-up insurance provides additional insurance cover over and above your existing plan. These policies are affordable and boost your sum insured significantly. It's the ideal health plan for those who have corporate health cover that isn't enough for their healthcare needs. How does it work? Say you have a health plan that offers a sum insured of INR 5 lakhs. That seems like enough on most days, but you would rather be safe than sorry. So, you decide to purchase a top-up health policy for INR 7 lakhs. After a medical emergency, you register a claim worth INR 8 lakhs. Your basic policy will only take care of the INR 5 lakhs. Without the health top-up, you would have to pay the remaining INR 3 lakhs. With the top-up, you don’t have to worry. The policy will pay the balance amount!

What About Deductibles?

Your regular health plan has a mandatory deductible on every claim. You can only file a claim when the bill amount for a single hospitalisation crosses the deductible. Thankfully, your health top-up doesn’t work like that. Instead, these plans have an aggregate deductible. So, as long as the total amount of claims you make across a policy year is more than the deductible, your top-up plan will help out! To get the most out of both your regular health policy and your top-up plan, you should opt for the deductible on your top-up to be the same as the sum insured amount on your health plan.

Health Top-Up in Isolation

You don’t always have to use your top-up plan with your health policy. If we continue with the above example, say you paid the additional INR 3 lakhs out of your pocket. Throughout the year, you face other health issues. You end up with separate hospital bills of INR 3 lakhs and INR 2 lakhs. To file a claim against your top-up

health insurance

, you need to pay your deductible. So, you pay the deductible of INR 2 lakhs on the first bill while the top-up takes care of the rest. For the second bill, you don't have to pay any deductible! The top-up policy will cover the entire INR 2 lakh bill!

Many people wonder why a health top-up is necessary. After all, paying the premiums for one health policy seems like enough. Health top-ups are very affordable and can help you get the treatment you need when you require it the most. It’s always best to purchase a top-up over and above your health plan. You never know when it will come in handy.

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