A top up health insurance plan is a supplemental or additional health insurance plan for people who already have an existing regular health insurance for themselves or provided by their employer.
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How does it work?
With the dramatic rising cost of medical expenses in India, the regular health which people have either through their employer and have purchased earlier may not be sufficient to provide adequate health cover to you and your family. Customer can however increase their primary health insurance coverage only at the time of annual renewal. This can prove to be very expensive. It is in this context that customers should consider buying a top up plan. Top-up health insurance plans can be purchased at any time and typically cost you much less when compared to the premium of regular health insurance.
The top-up plan offers you an additional cover when you exhaust your basic cover limit. This can be easily understood with a simple example.
Mr. Raj has a regular /primary health insurance cover for rupees 5 lakh. He purchases a top up health insurance for rupees 5 lakh.
Case 1: A medical bill of rupees 4 lakh is made. Then the regular health insurance will pay for the bills.
Case 2: A medical bill of rupees 9 lakh is made. Then the first 5 lakh is paid by the regular health insurance and the remaining 4 lakh is paid by the top up plan.
Case 3: A medical bill of rupees 12 lakh is made. Then the first 5 lakh is paid by the regular health insurance. The top up plan pays 5 lakh and the remaining 2 lakh is paid by Mr. Raj from his pocket.
Almost every insurance company now provides the top up insurance option along with the regular health insurance. It is up to the policy holder to look at the features, terms and conditions, premium etc before buying the add on plan.
What are the factors to consider before buying a top up health insurance plan?
Top up health insurance plans have a similar role of primary health insurance. They act like a backup or a ‘stepney’ to your regular health insurance and come into picture only when you exhaust the sum insured limit of primary health insurance.
Below are several factors to be kept in mind before buying a top up health plan.
Benefits: Go through the fine print in details to know what all does it covers and how much.
Exclusions: Check for the exclusions.
Restrictions: Before buying an add on health insurance plan. Please check for the restrictions like copay, deductibles, sub limits waiting periods, any threshold limit / Capping and more.
Policy Maximum: Check for the policy maximum the plan is offering you.
Premium: Price should be affordable and competitive.
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