Factors to Consider While Buying a Top-Up Health Insurance Policy

Health Insurance is the best way to tackle medical bills and lead a healthy lifestyle. Health Insurance has evolved over time to provide effective coverage to all. The increasing medical inflation has brought concern among people and boosted awareness about Top-Up Health Insurance policies. As a result, Top-Up Health Insurance plans are gaining a lot of attraction and are being welcomed in the market. 

A standard Health Insurance policy indemnifies the medical expenses, ensuring quality healthcare and necessary financial protection at the needful time. What if the medical bills exceed the opted Sum Insured? Here comes Top-Up Health Insurance plans to the rescue. Yes, Top-Up Health Insurance plans provide coverage after the exhaustion of the base Health Insurance policy. Such plans are crafted to provide financial backup even beyond the threshold limit of the base Health Insurance policy. Apart from the additional financial protection, the Top-Up Health Insurance policy also offers other benefits at an affordable premium.

Here are a few factors to consider before buying a Top-Up Health Insurance policy.

Policy Coverage 

Compare and make sure that the coverage and benefits of top-up policy favour your needs. Make a list of your healthcare needs to be clear whether the policy satisfies those needs. Also check for other benefits such as cover for Modern Treatments, Organ Donor Expenses, Wellness Services, Second Medical Opinion and so on.

Deductibles Limit

Most people often overlook deductibles. Deductibles define the amount the insured has to pay out-of-pocket before the insurer pays. Most Top-Up Health Insurance plans come with a deductible clause. Deductible limits of the policy make it more affordable. The higher the deductible, the lower the premium. 

Be mindful that the claim amount becomes eligible only when the deductible limits are paid by the insured. Check out the deductible limits. If the deductibles are high, you might end up paying a hefty sum out-of-pocket. Analyse the financial situation and opt for the right deductible limit. 

Waiting Period 

Health Insurance policies always come with waiting periods. The waiting period refers to the time the insured is supposed to wait to avail the coverage under the policy. The coverage for the diseases, illnesses or treatments that are bound with a waiting period becomes eligible after the completion of the same.

Let us say you have a base Health Insurance policy with 24 months waiting period for pre-existing diseases and a Top-Up Health Insurance policy with 36 months waiting period for pre-existing diseases. In such instances, your medical expenses of pre-existing diseases become eligible for the claim under the Top-Up Health Insurance policy only after the completion of the waiting period. Always go for the policy which offers less waiting period.

To avoid such inconveniences, it is wise to buy the Top-Up Health Insurance policy in the same year you bought the base Health Insurance policy. 

Premium Discounts

Most Top-Up Health Insurance policies offer various discounts, such as online purchase discounts, long-term discounts, family discounts, etc. Discounts will reduce the premium amount to a certain percentage, thus making it more economical. Star’s Super Surplus Insurance Policy offers a long-term discount. If the policy has opted for the term of two years, then a 5% discount on the premium is available. Do not miss checking out the premium discounts.

 Investing in Top-Up Health Insurance plans is the best way to enhance insurance coverage cost-effectively. Any person who has a base Health Insurance policy, either an Individual Health Insurance or a Family Floater Health Insurance policy, can avail Top-Up health plans. The premium paid towards the Top-Up Health Insurance plan will be exempted from income tax under Section 80D of the Income Tax Act, 1961.

Published on: Wednesday, June 21, 2023, 01:58 PM IST