What is Top Up in Health Insurance?

How Top-Up Health Insurance Works

Health insurance forms a very important safety net that helps in covering medical expenses. However, there are times when the basic sum insured by a typical health insurance policy is not enough to cover the high price tag of major medical emergencies or prolonged hospitalisations. That is where a top-up health insurance plan comes into the picture.

Understanding Top-Up Health Insurance

Top-up health insurance is an additional plan that provides financial support when your primary health insurance coverage is insufficient. Think of it as supplementary coverage that activates once your medical expenses exceed the deductible limit of your primary health insurance policy.

Key Features of Top-Up Health Insurance

●Deductible Amount
In top-up plans, deductibles are an important part. A deductible is the minimum amount paid out-of-pocket or covered under your existing health insurance plan that must be crossed over for your top-up plan to come into play. For example, if the deductible is Rs. 3-lakh, then a top-up plan will cover those expenses above it.

●Flexibility
Top-up plans are flexible about the coverage and can be modified to fit an individual's requirements. You can select the deductible and sum insured based on your economic capacity and medical requirements.

●Complete Coverage
Top-up plans cover most of the health care costs, including the cost of hospitalisation, pre-hospitalisation, post-hospitalisation expenses, and many other services that your basic policy may not entirely cover.

How Top-Up Health Insurance Works?

Example: Suppose your base health insurance policy has a sum insured of Rs. 5 lakhs, and you purchase a top-up plan with a deductible of Rs. 5 lakhs and an additional sum insured of Rs. 10 lakhs. Let's consider that you underwent some medical expenses. And it reaches Rs. 12 lakhs. Here, the first Rs. 5 lakhs will be covered by your base policy. And the rest of the Rs. 7 lakhs, that is, after crossing over the deductible of Rs. 5 lakhs, will be covered by the top-up policy.

Benefits of Top-Up Health Insurance

●Higher coverage: Top-up plans provide additional coverage that ensures not to leave you vulnerable when high medical bills come. It is extremely helpful in handling large hospital bills and expensive treatments.

●Cost Savings: You can increase your sum insured at a lower premium without buying a higher sum insured primary policy. This would save a lot of money for individuals and families.

●Peace of Mind: You won't need to dip into your savings to cover medical expenses that exceed the limit of your primary insurance policy. Your savings shall thus be safe.

●Tax Benefits: Premiums paid towards top-up health insurance plans can be claimed for tax under Section 80D of the Income Tax Act, hence another tax saving.

Top-up health insurance is an intelligent and pocket-friendly way of upgrading one's health coverage. It has the safety aspect of large medical expenditure beyond the cover of primary health insurance policy. Star Health Insurance offers comprehensive top-up plans designed to provide extensive coverage, ensuring your health expenses are managed efficiently.