The cost of medical care in India is increasing at a rapid pace. And, in the purview of the rising number of people suffering from lifestyle-related diseases, they are getting hospitalised frequently. To ensure that you get the best treatment without depleting your hard-earned savings, it is paramount you buy a comprehensive health insurance plan.

A decade ago, a health insurance plan worth three lakhs was considered sufficient to cover a family with 3 or 4 members. Today, however, the plan may not be enough to cover everybody’s medical needs. Taking additional insurance coverage can cause financial stress, and it may not be affordable for everyone. The best solution in this situation is to buy a top-up health insurance plan.

What is a top-up health insurance cover?

A top-up cover is an additional cover that you get over and above your original plan. For example, if you have health insurance for Rs. 4 lakhs, you can buy a top-cover of 2 lakhs either with your existing insurer or any other insurance company of your choice. In case, you get hospitalised, and your medical bills amount to Rs. 5 lakhs, your base insurance will cover the amount for Rs. 4 lakhs, and your top-up plan will cover the remaining amount.

Importance of top-up health insurance plan

If you are working in a corporate organisation, your employer may provide you with a health cover under the group health insurance policy. The policy may also extend the protection to your family members. However, the health insurance cover provided by the employer lasts until you are associated with the company. When you resign from your services, the insurance also ceases to exist.

Additionally, even if you have purchased the best health insurance plan, there is no guarantee that the sum insured will be enough to cover your medical bills. Hence, it is better to have a top-up health plan and be ready for all medical emergencies. Some of the benefits of a top-up health insurance plan include:

  • Buying a top-up cover is much cheaper as compared to buying an additional health plan and increase the sum insured.
  • You can easily buy a top-up plan online from any insurance company of your choice. You have the flexibility to buy the plan from your existing insurer or other company without any restrictions.
  • Another significant benefit of purchasing a top-up health plan is that it gives you the option to choose your deductible limit.
  • You can buy a top-up plan for your individual health plan or your family floater plan
  • You can also claim a tax deduction for the premium towards the top-up plan under Section 80D of the Indian Income Tax Act, 1961.

Essential facts about Top-up plan

To buy a health insurance top-up cover, you must meet specific eligibility criteria. You must be at least 18 years old, and the maximum age limit is 80 years. The age limit may differ from insurer to insurer.

Generally, insurance companies do not require insurance buyers who are less than 45-year-old to undergo any medical examination. But, this may vary from one insurance company to the other. If you are older than 45 years, you may have to undergo a medical examination to buy a top-up plan.

A lot of people tend to confuse a top-up plan with an add-on cover. However, the truth is the top-up plan is not a rider like a critical illness cover or a personal accident cover. A top-up plan is an indemnity cover that has the same features and benefits as a regular health insurance policy.

To sum up, a top-up health insurance plan is a convenient and affordable means to increase the sum insured of your health insurance and get quality medical care services.