Features and Benefits of Health Insurance Top up Plans
Top up plans in health insurance provide an additional cover to the policyholder to help you when your basic plan gets exhausted of its maximum sum insured limit. It helps in extending your maximum sum limit without putting an extra burden on your pocket. A top up plan is like a spare wheel to your primary health insurance policy.
For instance, Miss. Atrika Shukla has a health insurance policy of Rs 8 lakhs and she purchases an additional top up plan of Rs 5 lakhs. The following scenarios arise:
- If your medical expenses amount to Rs 5 lakhs, then only your basic health insurance plan will be used.
- If your medical expenses amount to Rs 10 lakhs, then the first 8 lakhs will be used from the basic health insurance plan and the rest 2 lakhs will be done through the top up plan.
- If your medical expenses amount to Rs 15 lakhs, then 8 lakhs will be settled from the basic plan, the remaining 5 lakhs from the top up plan and the rest 2 lakhs has to be borne by the policyholder themselves.
Types of Top-up Plans
Top up plans are of two types:
- Top up Plan: A top up plan comes into the picture only when the claim amount of the policyholder exceeds your basic health insurance policy. For instance, if your hospitalisation expenses are more than your basic health plan cover, in that case you can use your top up plan to settle the differential amount.
- Super Top up Plan: This plan offers coverage for all the hospitalisation expenses that go beyond the deductible limit of the health insurance plan( Multiple claims).
Benefits of Top up Plan Under Health Insurance
The benefits of top up plan under health insurance have been given below:
- At the time of filing a claim, if your existing health insurance plan gets exhausted, there is a monetary back up in the form of a top up plan.
- You have the option to upgrade your health insurance policy coverage at the time of renewal of the existing health insurance plan.
- Even if an individual does not have a basic health insurance plan, they can still buy a top up plan.
Features of a Top up Plan Under Health Insurance
The key features of a top up health insurance plan are highlighted below:
- A top up plan can be easily converted to a basic health insurance plan.
- Children can be included in the plan if both the parents are already covered.
- Sub limits and any kind of restriction is not applicable to hospitalisation cost such as consultation fees, room rent expenses, etc.
- A cumulative bonus can be availed on the sum insured for the claim free year.
- Some top up plans even offer a family discount.
- A 15 days free look period is offered from the policy purchase date.
- The plan can be issued for a period of 1-2 years.
- The plan offers a lifelong renewability option.
- Tax exemption on the payment of health insurance premium as per the Income Tax Act.
- Pre-medical examination is not required up to a specified age.
Conclusion
A top up plan is significant as it helps the policyholder in filling out the gap between the actual hospitalisation expenses and the coverage limit of their existing health insurance plan. Also, it is a suitable plan for individuals who are insured under a basic or a group health insurance plan.
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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.
