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The world was no less surrounded by dreadful diseases and unseen medical emergencies, now that the Covid19 pandemic has supplemented the predicament. With the rise of health issues and declining economic conditions, the human race has woken up to secure their lives in every possible way. In such challenging circumstances, what can give a superior defence than insurance covers? Not surprisingly, as the world suffered the worst in the case of their physical wellness, the need for medical or health insurance has escalated the most. Individuals are now becoming more aware and interrogative regarding the same.

Todayʼs generation is smart masterminds, whose inquisitiveness cannot be easily gratified. Gone are the days when policyholders window-shopped a random health policy. They want to receive the maximum benefits out of everything, which is diligently appreciable. To satiate this thirst, health insurance covers are backed by, amongst other things, certain top-ups. Here in this article, you will get a detailed concept regarding the same.

What is Health Insurance?

Health insurance is an agreement between the insurer and the insured, wherein the insured receives full or a part of the medical expenses from the insurer in return for a payment of the premium. It may cover the cost of surgery, prescribed drugs, other medical bills and even dental expenses in some cases as per various health insurance plans. In many organizations, employee health insurance is included in salary packages as a benefit. The premiums are partially paid by the employer and partly abated from the pay checks of employees, or such other agreement as agreed.

What are Health Insurance Top-ups?

Healthcare expenditures are on a rise. The health insurance plan that you choose will pay your medical bills during times of emergency. But there may be unfortunate times when your medical bills exceed the health insurance coverage amount. In such a case, your wallet has to compensate for the additional amount of the bill. In worst cases, this may even leave the policyholder penniless. This is where health insurance top-ups come to your aid. It is additional coverage to your primary health insurance plan that gives you protection when the sum assured of your existing policy gets exhausted.

You should note that top-up plans can be regulated only after you have paid the deductible amount. The premium for the top-up health insurance plans is very affordable. However, your deductibles will determine the premium you have to pay for your top-up plans.

Now, what is a deductible? In terms of insurance, a deductible can be defined as the sum you have decided to pay while selecting your health insurance policy. You need to pay this amount before you fill out the health insurance claim. The bright side of deductible is that it makes your top-up plans inexpensive.

Types of Health Insurance Top-ups

• Top-up Plan

These plans will supplement your sum insured up to a limited limit. You can claim the top-up health insurance policy when your medical expenditure is beyond your deductible amount. But you can claim the policy coverage only once per year.

• Super Top-up Plan

This type of policy supplements you with additional insurance coverage, when your medical expenses cross the deductible limit. In the case of a super top-up plan, you have the advantage of receiving the top-up benefit multiple times in a year, if the need arises during the policy term.

Do remember, in both types of top-up plans, if within 45 days of discharge from the hospital, the disease develops again, it is presumed as a single illness. But if the same develops after 45 days of discharge, it is presumed as a new illness

Why Do You Need Health Insurance Top-ups?

Health insurance top-up plans are cost-effective plans that help in saving your money. It protects you against increasing medical expenditures at reasonable premiums. For a detailed understanding, let us find out the features and benefits of health insurance top-ups.

Features and Benefits of Health Insurance Top-ups:

1. Health insurance top-ups are easily convertible plans. You can convert the same into your existing health insurance plans.
2. If both the parents are covered under one policy, children can also be added to the same policy
3. There are no limits or restrictions applicable on hospitalization cost, rent of the room, fees charged by the doctors or other medical practitioners, etc.
4. For every claim-free year of your policy, you are rewarded with a cumulative no claim bonus on the sum insured, which is up to a certain percentage.
5. You can avail yourself of a free look period of 15 days from the date of purchase of the policy. You can utilize this period to scrutinize the terms and conditions of the policy up to your satisfaction.
6. It may vary from insurer to insurer but the policy term can be issued for a period of 1 or 2 years.
7. Health insurance top-up plans come with a great benefit. You can renew the policy for a lifetime.
8. In some selected plans, you may avail of the facility of family discount, wherein the policyholder, their spouse, children and dependent parents are included in the same plan for a stipulated limit.
9. To avail of the top-up plans, the policyholder does not have to go through the pre-medical screening.
10. Under Section 80D of the Income Tax Act, tax benefits on the premium paid are available for the top-ups plans. Therefore, the tax liabilities of an individual can be reduced by up to Rs. 25,000. If the insured is of age above 60, then a higher deduction can be enjoyed.
11. If the insured is suffering from any pre-existing ailments while signing up for the health insurance plans, most plans do not give cover against them. But top-ups provide cover for such pre-existing ailments.
12. Medical inflation is rising at a lightning speed each day in India. So, investing in the top-up plans can bring you much relief to fight this inflation efficiently.
13. Most importantly, top-ups come with a double benefit. It gives you high coverage while paying a premium at an economical rate.

What is Covered under the Health Insurance top-up Plans?

Although the coverage differs from insurer to insurer, the following common benefits are covered for the insured:

• Compensation for the in-patient hospitalization cost.
• Pre hospitalization costs 60 days before hospitalization
• Post hospitalization costs are covered until 90 days after hospitalization
• Expenses for the room rent
• Ambulance expenses in case of emergency
• Organ donor expenses
• Day-care procedures

The rising cost of treatment and the uncertain nature of human ailment keep policyholders on their toes. And these are the two key factors that make health insurance top-ups effective and worth consideration. Top-ups are an ideal way of increasing your health cover when your sum assured doesnʼt seem sufficient enough. Any health insurance policyholder should assess his or her insurance coverage and decide if it is adequate or not. Accordingly, a suitable health insurance top-up should be applied for. Health insurance top-ups fill the bridge between the health insurance plans and medical costs during emergencies to give peace of mind to a great extent.

Medical emergencies can put families through times of great hardship. Money is a key part of this hardship. However, a health insurance ensures that you stay on top of your medical bills, and concentrate on the proper care and well-being of yourselves or your kin. With a top-up, you further accentuate this assurance. If you have any queries on your health insurance, and want to know more about health insurance top-ups, you need not worry. Get in touch with our Relationship Manager and find out all about it. We are committed to provide you the best guidance on your health cover