Health insurance premiums increase as you age. The situation gets complicated if your sum coverage is too high or if there are any problems with your health condition. Adding top-up insurance to your employer-provided health insurance can be a solution.
There are two types of health insurance top ups namely regular top up and super top up. A regular top up plan can be availed once in a year or till the policy value tenure whichever is more. But there is no limit to their usage in super top up plan. The policy value shall be restored herewith without any limit throughout the policy term.
Health top up
Health insurance top ups are additional coverages that are added to your existing health insurance plan. Generally, if the health insurance coverage limit is exceeded, the remaining amount has to be paid by the policy holder. But this problem can be solved by choosing a health top up plan. Here the difference after the premium limit is paid by the insurance company itself.
Top-ups are a cost-effective alternative to health insurance policies with large sum assured. Here you select an amount that you can deduct. If medical bills cross this threshold, they can be covered through a top-up plan.
An example will make things clear here.
Suppose your current health insurance limit is Rs 10 lakh. Health Top Up Insurance Rs.30 Lakhs Health Top Up Deductible Rs.10 Lakhs. Suppose you have a medical bill of Rs 20 lakhs to pay. Here Rs 10 lakh is paid from your health insurance and remaining Rs 10 lakh as health top up deductible amount. Here you don’t have to pay anything out of hand. Here if you don’t have health top up then you have to pay Rs 10 lakh from your own hand.
In practice, it is best to take health top up from the same insurance company that issued the base policy. This plan can be bundled with your family floater policy, or personal health insurance policy at affordable rates. Health insurance premiums in India have been increasing at a rate of 10 to 25 percent over the last few years.