Top Up health Insurance and Mediclaim Policy Coverage
Updated On Jan 17, 2024
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The majority of people go on living their lives without realizing the need to safeguard their healthcare expenses entirely. Although, they secure themselves with a medicare policy, however, the coverage for the same at times is not adequate. Naturally, a need for higher coverage is evident and that is when a health insurance top-up plan comes into the scene. Let us understand in detail about Mediclaim Policy coverage and Top Up health insurance.
Mediclaim Policy Coverage
A Mediclaim Policy is a type of health insurance plan that offers coverage for healthcare expenses of a policyholder up to the sum insured if any uncertain medical emergency arises. The insurance company makes the payment for the treatment expenses be it due to an illness or any accident that required hospitalisation including daycare treatment, in-patient expenses, pre and post-hospitalisation expenses, etc.
Features of Mediclaim Policy
The features of the policy are as follows:
- Pre and Post-Hospitalisation Cost: The mediclaim policy offers coverage for pre-hospitalisation costs up to 30-60 days and post-hospitalisation costs up to 60-120 days depending upon their respective insurance provider.
- Daycare Procedures: The cost for treatment not involving 24-hour hospitalisation is also covered under the Mediclaim policy.
- Tax Deduction: As per section 80D of the Income Tax Act, a policyholder can avail tax deductions on premiums paid against the Mediclaim policy.
- Additional Expenses Covered: Coverage of expenses towards alternative treatment, ICUs, and annual check-ups are also done by the insurer.
- Lifelong Renewability Option: A Mediclaim policy can also provide lifelong renewability cover to the policyholder depending upon the insurance company.
Top Up Health Insurance Plan
A top-up health insurance plan offers the policyholder additional protection if the sum assured amount of their existing medical insurance gets exhausted. These plans are more economical and affordable in comparison to the standard Mediclaim policy. To help policy buyers extend their threshold limit without having any effect on their budget, various health insurance companies have come up with these top-up medical insurance plans.
Features of Top Up Health Insurance Plan
The features of Top Up Health Insurance Plans are as follows:
- Convertibility: The top-up plan can be converted to standard health insurance plans.
- No restrictions on hospitalisation expenses: There are no sub-limits and restrictions on hospitalisation costs such as doctor’s fees, room rent, etc.
- Free Look Period: A free look period of 15 days is provided to the policyholder from the issuance date of the insurance plan.
- Cumulative Bonus: A cumulative bonus is provided to the policyholder on the sum insured for each claim-free year up to a certain percentage.
- Policy Term: the policy term generally ranges between 1 or 2 years depending upon the insurance company.
Read More:
Features and Benefits of Health Insurance Top-up Plans
What is Mediclaim and How Is It Different From Health Insurance?
Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive and should research further or consult an expert in this regard.
