Why a Top-up Plan makes all the difference in your health insurance policy

Posted on May, 2021

Everyone needs protection from unforeseen events that can create a financial burden by burning a hole through the life savings. These events are generally associated with the person’s physical well-being and come with high treatment and medical costs. To a greater extent, health insurance policies cover such expenses and provide a way for the policyholders to avoid paying them from their own pockets. However, as the policyholder can not plan these events, the medical costs can go over the sum assured of the health insurance policy.

This is where a Top-Up plan makes all the difference.

What are Top-up Plans?

Top-Up plans are a type of facility by which a policyholder can increase the sum assured of the current insurance policy. If the policyholder, at any time, feels that the sum assured is not enough, he/she can buy a top-up plan, and the health insurance policy will cover the expenses at par with the new increased sum assured. Top-up health insurance policies come with a clause called deductible. Deductible is the actual expenditure amount over which the top-up health insurance gets activated. The insurance company does not reimburses any claim below the deductible amount under the top-up policy.

There are two types of Top-Up plans: Basic Top-up Plan and Super Top-up Plan

Basic Top-up Plans:

A basic Top-up plan works on a per claim basis and allows the policyholder to cover the remaining expenses if they go over the health policy’s sum assured in a single claim.

Super Top-UP Plan:

A Super Top-up plan allows the policyholder to cover the remaining expenses if they go over the health policy’s sum assured due to multiple claims in a single year.

How do Top-Up Plans differ from a traditional health insurance policy

Suppose you have a health insurance policy with a sum assured of Rs 5 lakh. Due to an eventuality, you have to seek medical treatment by being hospitalised for several days. After you have recovered, your hospital bill comes to Rs 8 lakh.

In case you don’t have a Top-Up Plan, your policy will only reimburse you the sum assured, i.e. Rs 5 lakh. You will have to pay the remaining Rs 3 lakh from your own pocket.

However, if you have a basic or super Top-up plan of Rs 3 lakhs, the Top-up plan will cover the remaining Rs 3 lakh over the sum assured amount. In this case, you won’t have to pay anything from your own pocket.

Health Insurance: With or without a Top up plan?

When you understand that the current sum assured of your health insurance policy is not enough, it is always wise to increase it until it is adequate. Top-up plans are much more cost-effective in increasing the coverage than expanding the base cover of the health insurance policy. Top-up plans can allow you to increase the sum assured to any amount you want and customise it further to cater to your health needs. Being a valuable addition, you should consider Top-up plans to make your health insurance policy comprehensive.

Picking a Top-Up Plan

Picking an ideal Top-Up plan starts with successful consultation with your insurance broker. Being an expert in the field, they are the ones who can analyse your current financial conditions and predict your future insurance needs. You can give time to compare different Top-Up plans to find the best one for you and add it to your current health insurance policy. It is also critical that you do a timely review of your Top-Up health insurance policy to ensure its success.

Now more than ever, health insurance policies are the one insurance product that should find a place in a person’s portfolio. Since every health insurance policy now covers Coronavirus claims, they can provide a complete protection cover by attending to the immediate insurance needs. However, as the extent of the medical expenses is uncertain, a Top-Up plan can prove highly beneficial in ensuring that the policyholders can cover all the expenses under the health insurance policy.

If you are looking to add an ideal Top-Up plan to your health insurance policy, PINC Insurance is the one-stop solution for buying the most comprehensive Top-up health insurance policies. Having an experienced team of insurance experts ensures that you complement your health insurance policy through the most suitable Top-Up plan.