Here’s Why You Should Opt For a Top-Up Health Insurance Plan

Can an astrologer provide you assurance about the future? Do planetary shifts determine what will occur tomorrow? Nobody is ever guaranteed to be able to foretell what will happen next door. We all know that while dealing with such unanticipated events, insurance acts as a safety parachute. However, in today’s inflationary environment, no health insurance is adequate to cover all of the necessary medical expenses, and switching to a new policy each time is also not the best course of action. Instead, you can choose a health insurance top up plan that, for a small fee, expands your coverage and raises your threshold limit.

What is top up in health insurance?

Let’s use an example to help you understand:

Karan, a 30-year-old pre-sales manager, was seriously hurt in a potentially fatal accident. Fortunately, although not entirely, his treatment expenditures were covered by his employer’s medical insurance. Like us, Karan believed that a cover of 4 lakh rupees would be more than enough for his medical care, but he was unaware of the accident that could have left him in debt. Using his money looked to be the last resort for him because the health insurance could only cover a total cost of Rs. 4 lakh rather than Rs. 6 lakh. He wouldn’t have had to spend his resources and jeopardise his future goals if he had obtained a top-up health insurance plan. To help him deal with the high treatment costs or pay the difference, a top-up would have provided him with extended insurance of Rs. 2 Lakh at a low cost. *

How are top-up programmes implemented?

Top-up plans operate under a cost-sharing paradigm and are helpful when the insured is responsible for paying treatment costs that are more than the deductible or guaranteed maximum. The top-up plan enters the picture by assisting the insured with the costs that exceed that threshold limit when your medical expenses approach the cover limit, and your insurer ceases taking into account your higher treatment cost.

The range of sum insured amounts offered by different insurers is between Rs. 50,000 and Rs. 15,00,000. The deductible amount is between Rs. 30,000 and Rs. 5,00,000. Health insurance top up plans offer complete coverage up to the sum insured, excluding the deductible amount covered by a regular health insurance policy. *

The benefits of top-up plans

  • When compared to ordinary health insurance policies, top-up plans are less expensive when the deductible is larger.
  • Purchasing a top-up plan is preferable to inexpensively extending basic health insurance.
  • These policies are simple to acquire and are available from any insurer without limitations. A health insurance top upand a basic health insurance policy may be offered by two distinct companies.
  • In addition to family floater coverage, top-ups are also offered.
  • Section 80D permits tax deductions for these schemes. **

It is advised to buy a reliable health insurance policy that pays for hospitalisation and medical expenses. And if the threshold restrictions are crossed, choosing a top-up plan is the best way to handle the increased expense of treatment. The cost of the plan will decrease as the deductible increases. Top-up health plans, however, are designed to fill the gap between current policy and actual expenditures. Instead of duplicating, the goal is to affordably purchase more protection. You may optimise the higher coverage and your premium cost by using a base plan and a top-up together. Many people who have a basic health insurance plan frequently think about purchasing a top-up plan due to the rising inflation, especially in the healthcare industry. This is done in order to guarantee appropriate financial security even as medical costs increase.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.