The health insurance plan offers financial protection against hospital expenses. If you want toincrease the coverage, top up plans provideyou with the additional protection at affordable premium. . Read further to know why you should opt for Top-up plans.
When Mr Kumar purchased a health insurance policy with a sum assured of Rs.5 lakhs, he paid a monthly premium of nearly Rs. 13,000. A few years later, when he got married, he chose to extend his cover with top-up health policy with a sum assured of Rs.7 lakhs.
In the above example, to avail of the health top-up policy, he had to pay the extra premium amount. In return, he got an extended coverage at affordable premium rates.
Top-up plans offers health cover over and above your primary health insurance policy. When the threshold limit for hospital bills gets exhausted, the top-up health plan will cover the remaining hospital expenses.
Types of top-up health plans:
- A plan wherein the deductible limit is determined based on each hospitalisation.
- Super top-up policies wherein the threshold limit applies to total expenses incurred during the policy
Features of a top-up health plan:
- The duration of the policy varies from 1 to 2 years
- No need for medical screening up to 55 years of age
- Avail tax benefits under Section 80D of the Income Tax Act
- Avail free-lock-in period of 15 days from the date of purchase of a top-up plan
- You're eligible for a cumulative bonus for every claim-free year
- If the policy covers both parents, there is a flexibility to include your child in future
What does the top-up health plan covers?
- Pre-hospitalization expenses Post-hospitalisation expenses
- Organ donor expenses in some plans
- Ambulance charges
- Day-care procedures
- Cumulative bonus at the time of policy renewal
- Compensation for in-patient hospitalisation
Tips for choosing a top-up health plan
Choose the plan from the same insurer: It is best to buy a top-up plan from the same health insurance company. Depending on your needs, the insurer will be able to offer a plan.
Tax deduction: You are entitled to tax deductions. Whether you avail top-up or super top-up plan, the premiums you pay for the plans are eligible for tax deductions under Section 80D of the Income Tax Act.
Choose the plan that complements your primary health insurance policy: As compared to family floater policies, top-up plans are cost-effective. A family floater plan with a sum assured of Rs. 5 lakh covering self, spouse and one child will cost around 10,000 to 17,000 annually, while a top-up plan with a cover of Rs. 5 lakh will cost Rs. 4,000 to Rs. 7,000 a year.