Health Insurance 1661 views April 9, 2020

Why You Need a Top-Up Health Insurance Plan?

Top-up health insurance policies provide the benefit of supplementing the coverage of health insurance plans by paying low and affordable rates of premium thereby making it popular among people. These insurance policies have a specified amount of sum assured along with a deductible limit. Under the top insurance plan, the claim is paid when the amount of claim exceeds the deductible limit. The plans are priced low as these plans pay the claims only when the claim exceeds the deductible limit. Hence, top-up plans are easily affordable.

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Why do you need a Top-Up Insurance Plan?

You might need a top-up insurance plan because of its numerous benefits. The benefits that can be availed from top-up insurance plans are as follows:

Top-up plan supplements the existing coverage of the health insurance plan

Claim is paid under top-up insurance plans if it exceeds the deductible limit. If you have a health insurance plan with a lower amount of sum assured then you can increase its coverage through a top-up insurance plan. You can purchase a top-up plan with a deductible limit equal to the sum assured of your existing health plan. On doing so, your claims in excess of the sum assured of the health insurance plan will be paid by the top-up plan.

The premiums on top up insurance plans are very low

Top up insurance plans are an addition to existing health insurance plans.  A health insurance plan with Rs 5 Lakh sum assured cost normally Rs 7,000 to Rs 12, 000 whereas top-up health insurance plan cost as low as Rs 5000 only for Rs 5 Lakh sum assured with a deductible of Rs 2 Lakh.

Increased Coverage

With a top up plan you can increase the coverage of your health insurance plan. If you have a health insurance plan of sum assured of Rs 3 lakh then you can enhance its coverage by buying a top up insurance plan of Rs 5 lakh with a deductible limit of Rs 3 lakh in which you will be benefitted with sum assured of Rs 8 lakh in which Rs 3 lakh will be paid through the health plan and any amount in excess will be paid through the top-up insurance plan

Suitable for those who can bear part of hospitalisation cost

Some people can bear the hospitalisation cost up to a specified limit. However, in case of critical issues, the hospitalisation cost may be higher than what you can bear then a top-up insurance plan will be beneficial.

Top-Up Plan can be purchased as a floater plan

Top-up insurance plans offer you the benefit to purchase it as a floater plan. It not only provides coverage to the holder of the policy but also to the spouse, dependent parents and children of the policyholder. Some of the floater top-up insurance plans also offers coverage for an extended family of the policyholder such as in-Laws and siblings.


Nowadays hospitalisation and treatment cost leads to huge financial outflow for which a health insurance plan with low sum assured will not enough. Hence you should buy a top-up health insurance plan as soon as possible because top-up plans have a waiting period applicable before which no claims would be entertained.

Top-up insurance plans work very much like health plans. It does not include coverage of pre-existing illness in the first few years and has a waiting period independent from the normal health insurance plan. Even after waiting out the waiting period of your normal health insurance plan, you will have to wait for another waiting period of the top-up plan to enjoy the benefits if you buy top-up plans late. Hence, it is advised to buy a top-up plan along with your health insurance plan and if you already have a health plan then you should buy a top-up plan on it at the earlier to enjoy the benefits. Top-up insurance plans enhance coverage and provide future financial security.

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