Anyone who has gone through a medical emergency knows that it leaves one with no time to think and can easily set you back financially. Hence, it is very important to have sufficient health insurance coverage. But how do you know if your cover is sufficient? When you buy health insurance, you roughly estimate the sum insured on the basis of your current needs and the premium. It is very possible that you realise over time that you may need higher cover but cannot pay a higher premium.
At such times, purchase a top-up health plan to enhance your health insurance policy’s limit at a nominal price. A top-up health insurance plan gives an extra cover to you if your regular health insurance plan’s coverage gets exhausted.
What is top-up health insurance?
Top-up health insurance is a supplemental health insurance plan that provides additional coverage beyond the threshold limit of an existing policy. It is designed to provide additional protection to individuals who may require medical treatment beyond the amount covered by their primary health insurance policy.
A top-up health insurance policy is beneficial as it offers higher coverage at an affordable premium. It provides financial support in case of unexpected medical emergencies or illnesses that require higher medical expenses. With the rising cost of medical treatment, a top-up policy is a wise investment in ensuring adequate healthcare coverage for oneself and their loved ones.
In India, top-up health insurance policies are gaining popularity due to their cost-effectiveness and comprehensive coverage. Insurance providers offer various top-up policies with different features and benefits, allowing individuals to choose a plan that best suits their healthcare needs and budget. It is advisable to compare and research various top-up health insurance policies before making a decision.
How does top-up health insurance work?
As mentioned above, top-up health plans offer additional coverage beyond the threshold limit of an existing health insurance policy to policyholders. For example, an individual has an existing health insurance policy with coverage up to Rs. 3 lakh. They can purchase a top-up policy with coverage up to Rs. 5 lakh. If the individual incurs medical expenses of Rs. 4 lakh in a year, their primary policy will cover up to Rs. 3 lakh and the top-up policy will cover the remaining Rs. 1 lakh.
Basically, top-up health insurance works as a financial backup plan, providing adequate healthcare coverage during medical emergencies. Also, check super top-up health insurance available in India.
Read more: Super Top-up Health Insurance
Key benefits of top-up health insurance plans
Here are some key benefits of top-up health insurance plans.
In-patient hospitalisation treatment coverage
Get coverage on charges incurred during hospitalisation for treatments, tests, or other medical procedures. It includes the medical expenses, but the room rent capping depends on the insurance provider.
Pre-and post-hospitalisation coverage
You may incur a few medical expenses before hospital admission and after discharge. These include diagnostics tests, such as angiograms, X-rays, MRIs. Also, medication needed before and after hospitalisation. Top-up health insurance covers these charges up to 60 days before and 90 days after hospitalisation. The duration may differ from insurer to insurer.
Organ donor expenses coverage
Donors feel reluctant to come forward as they must cover their medical expenses. With a top-up health insurance plan, you can steer clear of this major deterrent. It covers the surgical and medical costs associated with harvesting a critical organ transplant of the insured.
Emergency ambulance coverage
You no longer have to pay for emergency ambulance charges if your health insurance does not cover it. With a top-up plan, you get the sum insured as per the insurance purchased.
Top-up health insurance offers additional coverage at a much lower cost than regular health insurance.
No restrictions on coverage limits
Unlike basic health insurance, top-up insurance has no restrictions on coverage limits. This means that you can choose the amount of coverage you require based on your individual needs. Top-up health plans usually do not have sub-limits or restrictions on hospitalisation expenses like room rent, or doctor fees, etc.
You can easily convert top-up health insurance into a regular health insurance policy if and when required.
High coverage at an affordable premium
Get additional coverage over and above your health insurance policy. Top-up health insurance plans come with higher coverage at affordable premiums.
Get tax rebate for the premium paid towards the top-up health insurance policy. You can file for tax exemption under the relevant sections of the Income Tax Act.
Covers pre-existing illnesses
Many top-up health insurance plans cover pre-existing diseases. Usually, you get to benefit from the coverage after a waiting period. Most insurers apply a waiting period of 2 to 4 years on the pre-existing diseases. During this period, you cannot claim for the benefits if you undergo any treatment for the pre-existing illness. The conditions vary from insurer to insurer.
What are the types of top-up health insurance plans?
You get top-up health insurance in two forms. One, a simple top-up health plan and another, a super top-up health plan. Both these types work as a booster to your primary health insurance plan. You can use these plans to pay the additional medical expenses if your regular health plan gets exhausted.
Check what is health insurance and its types.