What Is A Top-Up Health Insurance Policy?
Updated On Aug 25, 2021
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A standard health insurance plan can be insufficient sometimes in meeting the requirements of the individuals. A standard health insurance plan provides benefits like hospitalization expenses, domiciliary expenses, room rents, ambulance charges, etc. People suffering from critical diseases or pre existing diseases might not be able to cover their medical expenses using the base health insurance plan. Health Insurance providers have rolled out additional health insurance policies to offer the policyholders extra coverage at an affordable price. Such additional policies include add on covers, top up plans, super top up plans, etc.
A top up health insurance policy is an additional cover which adds extra value to the existing health insurance plan and extends its coverage at an affordable price. It comes with additional benefits and features to meet the requirements of the policy holders. This health insurance plan covers the medical expenses which exceed the threshold limit of the basic health insurance plan. These threshold limits are called deductibles which make the top up health Insurance plans cheaper for the customers.
About Top Up Health Insurance Plan
A top up health insurance plan acts as an additional protection to the existing health insurance cover of the policyholder. It looks after the medical dues of the customer which exceed the deductible limit of the base plan, which is decided by the insurer. There are several top-up plans that are available in the market. You can choose a suitable top up for yourself based on your requirements and invest in the same. Following are some of the standard features of a top-up health insurance plans:
- It can be easily converted into a basic health insurance plan.
- Children can be included in the plan along with their parents for overall coverage.
- No restrictions are there on the hospitalization expenses like room rents, doctors consultation fee, etc.
- Cumulative bonus is provided on the sum assured for every claim-free year in the policy tenure.
- A free-look period of 15 days is granted to the policyholders to go through the policy papers carefully.
- The term of the policy may differ from one insurer to the other.
- Lifetime renewability of services is provided to the policyholders for renewal of the health insurance plans.
Benefits of A Top Up Health Insurance Plan
Let us look at some of the exclusive benefits of a top-up health insurance policy that can be availed by the policyholders at the time of claim settlement process:
- To help the customers overcome the financial burden, it looks after the medical expenses that exceed the threshold limit of the base plan.
- This plan adds extra value to the existing health insurance plan thus providing wide coverage at an affordable price to the policyholders.
- It supports the customers in dealing with the rising inflation in the medical sector. It effectively deals with the high costs of medical treatments.
- Policyholders who are also taxpayers get tax deduction benefits under Section 80D of the Income Tax Act.
- Some base plans do not offer coverage for pre-existing diseases and therefore, you can supplement your base plan with a top-up health insurance.
Why Should You Buy A Top Up Health Insurance Plan?
Following are the reasons to invest in a top-up health insurance policy:
- Top up health insurance plans are cost-effective and provide wide coverage at an affordable price.
- This plan can reimburse your money for any medical treatment.
- No pre-medical healthcare checkups are required to buy this policy.
- It effectively looks after the rising costs of the medications and offers tax deduction benefits.
- There is one sum assured for all the members insured under this plan.
A top up health insurance plan is a wise investment to be made for adding extra value to your existing standard health insurance cover. Various health insurance providers offer top up plans which you can compare and buy according to your financial budget, requirements, etc. You must read the policy papers carefully to know the inclusions and exclusions of the cover.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.