In the context of health insurance, a supplemental plan, known as a “top-up” policy, serves as an indemnity policy that offers additional medical coverage to those already covered by an existing health insurance plan or an employer-provided Mediclaim policy. This type of policy can be advantageous for individuals who require additional medical attention but have already surpassed the insured sum of their regular health insurance policy. Nevertheless, it is crucial to note that a top-up plan necessitates a mandatory deductible and provides coverage exclusively after the insured has paid the deductible amount.
For instance, suppose you have a health insurance policy with a sum insured of Rs 5 lakh. If a medical emergency arises, the policy will cover up to Rs 5 lakhs of medical expenses. However, if the medical expenses exceed Rs 5 lakh, the additional amount will have to be borne by you. That is where super top-up health insurance comes in handy. Suppose you purchase a top-up plan with a sum insured of Rs 10 lakh and a deductible of Rs 5 lakh. In this case, the top-up plan will cover medical expenses exceeding Rs 5 lakh, up to a maximum limit of Rs 10 lakh.
Top reasons to have Super Top-up Health Insurance
1. Cushion against inflation
Medical inflation is a reality we must face, and its impact on healthcare expenses cannot be understated. In today’s world, healthcare costs are skyrocketing, and even a minor medical emergency can cause significant financial strain on your budget. With the increasing prevalence of lifestyle diseases and the ongoing pandemic, medical inflation has become a severe concern for many people. For instance, if you visit a doctor for seasonal flu, the combined costs of consultation, pharmacy bills, and several tests would be in the thousands of rupees. Now consider the cost of treating a severe illness.
In this situation, having adequate health insurance coverage is critical. However, even the most comprehensive health insurance policy may only cover some medical expenses. That is where top-up health insurance comes into play.
2. Affordable premiums
Top-up health insurance premiums are often more affordable than traditional health insurance policies. That is because top-up policies only cover medical expenses that exceed a certain threshold, which reduces the risk for insurance providers. As a result, you can get additional coverage without having to pay high premiums.
3. Flexible policy features
A top-up health insurance policy is a versatile option that allows you to customise your coverage to meet your specific needs. You can customise your deductible, coverage amount, and other policy features to suit your needs. This adaptability allows you to design a policy that suits your needs and budget.
4. Tax benefits
Similar to any standard individual or family health insurance policy, purchasing a top-up health insurance policy also offers tax benefits. According to Section 80D of the Income Tax Act of 1961, you can deduct up to Rs 25,000 from your tax liability for the premium paid towards the policy for yourself, your spouse, or your dependent children. If you are a senior citizen, the deduction limit for top-up insurance premiums rises to Rs 50,000. As a result, supplemental health insurance policies can not only provide additional coverage but also aid in effective financial management.
5. Supplement group health insurance
When it comes to health insurance coverage, it’s essential not to take anything for granted, particularly if your coverage is through your employer’s group health insurance policy. While you may feel content with the policy’s coverage, you may want to reconsider and examine its details. Typically, such plans provide only basic coverage and may fall short of covering the costs of complex medical treatments or long-term medical care. In order to address these gaps, nothing is better than super top-up health insurance.
In conclusion, a top-up plan is a superb addition to a primary health insurance policy, providing additional coverage at an affordable cost. However, it is essential to understand the nuances of the plan and carefully evaluate the deductibles and limitations before purchasing a top-up plan. You can ensure adequate financial protection during a medical emergency by doing so.