Top-up Health Insurance

The best way to be financially equipped for any medical emergency is by buying a health insurance policy. It helps you pay the hospital bills, treatment cost, medication, etc. But what if your hospitalization expenses go above the sum insured limit? Well, you can deal with that only if you have an additional cover over the basic sum insured limit. This can be possible with a  top-up policy, which is an add-on plan over your regular health insurance policy. This will cover hospitalization costs outside the specified limit of your regular health insurance policy. Top-up health insurance not only costs less but offers high coverage too.

The best feature of top-up health insurance is that it is available with most of the health insurance companies and you can buy it either from the existing insurer or from a different insurance company. So, read this post to know the features, advantages and all other things associated with top-up health insurance.

Features of Top-up Health Insurance Plan

1. Conversion of Basic Health Policy: You can easily convert your standard health insurance policy to top-up health insurance. To do so, you just need to visit the insurance company or ask for the top-up details from the company customer service provider.
2. Add Children: If you want to cover your child in the existing insurance policy, you can provide the required documents to the insurer. This can be done easily while you are buying a top-up health insurance policy in India.
3. No Restriction on Medical Costs: Unlike your base policy, there aren’t any restrictions on your top-up health insurance. It will cover the expenses above the limit of your base policy, which helps get you extra support during a medical contingency.
4. Family Discount: You might get an extra discount on your top-up health insurance policy if you buy a family floater plan. However, not all insurance companies may provide it. So, do your research carefully.
5. Cumulative Bonus: A cumulative bonus in top-up health insurance is a monetary advantage that you gain as a reward for not making any claim in a policy year. Some insurers may provide you a reward like a discount on your premium, an additional sum insured, etc.
6. Free Look Period: Before you buy a policy, the health insurance company provides you a 15-day free look period where you can return the policy if you aren’t satisfied with the terms and conditions of the policy.
7. Duration of Top-up Health Insurance: The policy can be issued for 1 to 2 years. Within this period, you can take full benefit of top-up health insurance.
8. No Pre-medical Examination: Up to a certain age, the insurance company doesn’t require a pre-medical check-up of the insured person. If the age of the applicant is 60+ the medical examination is necessary.
9. Renewability: The policy can be renewed for a life long period.
10. Tax Benefit: Under the Income Tax Act of section 80D, you can get a tax rebate on your top-up health insurance policy.

Coverage of Top-up Health Insurance Policy

1. The cost incurred during in-patient hospitalization
2. Pre and post hospitalization expenses of the insured person for 60 and 90 days. However, it may vary based on the company you choose
3. Daycare treatments
4. Organ transplant
5. Domiciliary treatment
6. Emergency ambulance expenses

Benefits of Top-Up Health Insurance Plan

A monetary backup is created on your base health insurance, so it can be used when your policy is exhausted. It is an alternative by which your current policy can be upgraded. The top-Up policy can be purchased even if you don’t have a base policy.

When Can the Top-up Plan be Used?

The top-up health insurance policy can be used when the medical expenses exceed the deductible amount. Let’s understand it with an example. Suppose you have a health insurance policy with coverage of INR 7 lakh. However, when your coverage might fall short during a medical emergency, you can increase it by say another INR 3 lakh.

How to Choose a Top-up Health Insurance?

Choose an affordable top-up health insurance plan with a higher deductible. Also, you need to ensure there should be no duplication of benefits while purchasing the extra coverage. If dental allowance, daily cash option, etc., are already present in your regular health plan, don’t emphasize much on them on your top-up health insurance. And do check the waiting period for pre-existing health conditions, pre, or post-hospitalization coverage, maternity expenses, and so on. It is also advisable to confirm the number of relationships that are covered under the top-up policy.

Top-up health insurance helps bridge the gap between your health coverage and medical expenses. But investing in a top-up plan requires a basic understanding. So, do check the terms and conditions in detail when you look to buy a top-Up health insurance policy.