Are Top-Up Policies Good for You?

 Health insurance is a necessity for every individual and family today. While this is an undisputed fact, considering increasing lifestyle ailments, stress, and rising healthcare costs, there are some situations which you need to consider. Suppose you have selected a policy after checking out multiple health insurance plans. In this situation, choosing the right sum insured (the maximum amount to be paid out by the policy) is important. Scaling up the sum insured may be a good option when it also leads to an enhancement of the sub-limits of the chosen policy. However, the higher this amount, the higher your premiums. The age of the insured person or the oldest insured individual in a family plan influences the premium along with the sum insured.  

Then how best can you enhance your policy coverage without paying a massive amount in premiums? This is where a top-up health insurance policy comes into the picture. But is it a good choice for you? Let us find out more in this article.  

Why You Should Consider Top-Up Health Insurance Plans

Top-up health insurance plans help enhance the overall sum insured that you get with your base policy. Almost all major providers offer these top-up policies which are comparatively affordable options to get extra coverage and various other benefits alongside. Here are some core aspects that are worth noting in this regard:  

• Top-up health insurance means getting extra coverage whenever your policy reaches its limits.  
• Only those with base health insurance policies, including individual insurance, family health insurance, senior citizens’ health insurance, or group health insurance, can choose top-up policies.  
• The best part is that the top-up policy can be purchased from any insurance company. You do not have to compulsorily purchase top-up health insurance from the same insurer from whom you purchased your base policy.  
• Taking increasing medical costs into account, a top-up policy will be a vital tool to help you lower out-of-pocket costs.  
• Along with expenditure incurred on hospitalisation, it will also cover organ donor costs, delivery expenses and more at comparatively affordable premiums.  
• Top-up policies also come with deductibles, which make the premiums more affordable.  
• However, the insured individual has to pay this deductible in order to get coverage under the terms of the policy.  

• Like regular health insurance policies, top-up plans also come with tax deductions under Section 80D of the Income Tax Act.  

There are various top-up health insurance plans that you will find from multiple providers today. You can get extra coverage up to your chosen amount while some policies offer coverage for in-patient hospitalisation, post and pre hospitalisation costs, treatment costs, ambulance costs, recharge benefits and more. In most cases, you do not require any pre-medical screening to be eligible for these policies.  

 

The inclusions and exclusions vary across insurers along with the overall benefits and coverage terms. The entry age should also be checked carefully before you finalise your top-up plan. If you have elderly family members included in your plan or a family history of specific illnesses, then you should consider top-up policies as a financial safeguard against future medical emergencies or risks.   

 

Signing Off  

 

Before choosing any top-up health insurance policy, remember to choose a more affordable deductible in order to save on costs. Always take time in evaluating your base policy and determine whether you require extra coverage. If you do, then a top-up policy is always the best option for your needs. Medical costs are on the rise in recent years and are projected to go up even more in the future. Considering these factors, it may make sense to avail a top-up policy over and above your base health insurance plan.