What is top-up health insurance?
Awareness about the importance of health insurance has increased after the pandemic effect. Keeping the medical system in India, we all know that if we wish to have a quality medical treatment the only option we are left with is to visit a well-equipped private hospital. Due to technological advancement in the medical field, some types of medical treatments may cost high and if the patient has to stay in the hospital for many days, then the hospital bills go high which can result in a huge financial loss on the families and even it can exhaust all the lifetime savings.
Health Insurance comes to rescue if there is a sudden hospitalization due to any unexpected accidental incidents in our lives or if there is a health issue. A Top-Up Health Insurance Plan is an additional plan that can be taken to cover the medical expenses once the base sum coverage is exhausted. It can be considered as a back-up plan.
When do you need top-up health insurance?
A Top-Up Health Insurance can be taken if you already have a health insurance plan that covers some basic amount and you want to have more coverage. The reason is to increase the coverage limit either if you have a base cover or if you have some health insurance provided by your employer and you want to have some more extra coverage amount to meet the high medical expenses.
How does the Top-Up Health Insurance Work?
A Top-Up Health Insurance Plan is just like a spare plan to cover some additional amount if the base sum is not sufficient to meet increasing medical costs or if you just want to have more coverage over your base plan.
For example, if you have a base plan that covers for 5 lakhs, and a Top-Up plan for 7 lakhs. If the total bill of hospitalization is 6 lakhs, I that case the base plan pays the initial 5 lakhs bill and the remaining 1 lakh is paid by the top-up plan. Generally, if you don’t have a top-up plan then the base insurance plan covers only up to 5 lakhs in this example and the additional 1 lakh has to be paid out of pocket from the insured person.
An important thing to keep in mind while purchasing a top-up plan is to choose the deductible amount wisely. It should be at least equal to the sum insured amount of your base plan.
Which insurance company is offering the top-up health insurance plan?
Almost all top players in the market are offering their top-up plans. Check if your current insurer is offering atop-up health insurance in case if you have a base plan. Below mentioned are some top-up health insurance plans offered by different insurance providers in India.
- My:Health Medisure Super Top-up – offered by HDFC ERGO
- Optima Super – offered by HDFC ERGO Health (Earlier known as Apollo Munich Health Insurance)
- Enhance – Health Insurance Super Top Up – offered by Care Health Insurance (Earlier was known as Religare)
- Extra Care Plus Policy – Offered by Bajaj Allianz
- Super Surplus Insurance Policy – Offered by Star Health Insurance
- Health Recharge – Offered by MaxBupa Health Insurance
Types of top-up health insurance plans
Top-Up Health Insurance plans are of two types called top-up plans and super top-up plans. The only difference between the two is a top-up plan can cover a single hospitalization bill when it exhausts the base sum cover. Whereas the super top-up plan covers multiple claims in a year irrespective of the health issue being treated. It is important to know that top-up plans come into action only once the base sum gets exhausted. A premium of top-up plans varies based on the deductible amount chosen while purchasing. The deductible amount is the base sum cover or the amount that an insured person has to spend out of his pocket in case he won’t have a base plan.
Can I buy a top-up plan from a different health insurance company?
Yes, you can always buy a top-up health insurance plan from a different insurer than the one you purchased the base plan. There is no compulsion that you must take the top-up plan form the same company that you purchased the base plan.
But the point to consider is the top-up plan comes into action only once the base cover gets exhausted. Things to keep in mind if you are purchasing the top-up plan from a different insurer is, to select the hospital that is tied up with both the insurance companies. This means the hospital you choose must be in the network hospitals list of both the insurance companies for a smooth and hassle-free claim settlement. To avoid this type of hassle, you can select the top-up plan offered by the same company that you have the base plan with. Another notable point is not all health insurance and general insurance companies offer the top-up plans.
Advantages of Top-Up Health Insurance Plans
Top-Up Health Insurance Plans cover almost all the features that a base plan covers. So what is the benefit of taking an additional plan when you already have a base plan? The answer is simple to have more cover at a lower cost. Below are some advantages of top-up health insurance plans.
- They are cost-effective compared to the base plans.
- You get additional coverage at a smaller investment.
- They help you once your base some cover gets exhausted.
Can I purchase a Top-Up Health Insurance if I don’t Have a base plan?
Yes, a top-up plan can be purchased even if you don’t have a base plan. But as mentioned above the top-up plan covers the amount only after the deductible is exhausted. A deductible is a coverage amount or the limit you choose while purchasing a top-up plan. Hence if you are choosing a top-up plan without a base plan, then choose the deductible amount wisely that you can afford out of your pocket.
Hari Krishna is an experienced and IRDA certified POS insurance advisor with a keen interest in writing informative and research-backed content related to insurance and health-related topics. He has previously worked in business development and marketing roles with several healthcare organizations. Hari has developed a deep understanding of the challenges faced in India’s healthcare, particularly due to lack of resources or adequate health coverage.