What are Top-up Health Insurance Plans?
A Top-up health insurance plans, as the name implies is a scheme which provides additional cover, typically over and above the current available limit, at lower premium amounts. It can be considered as a safety net which helps you in case you exceed certain limits. Under a normal health insurance plans, the insurer pays the amount which an individual is insured for, but there could be cases when the expenses exceed this amount, which is where a top-up plan comes into play.
In simple words, a Top-up health insurance policy provides protection after the basic threshold limit under a normal policy is breached.
What is a Super Top-up Health Insurance Plans?
A Top-up insurance policy has certain drawbacks when it comes to its implementation, which can be resolved by opting for a Super Top-Up policy. Unlike a Top-up plan which pays only if the threshold limit on a regular policy is exceeded on a single hospitalization, a Super Top-up provides cover over the threshold limit in multiple cases.
In simple terms, a Super Top-up Health Insurance policy has provisions for multiple claims, which are not offered by a regular top-up plan.
Points to Remember:
There are a few key points which one should be familiar with before they consider a top-up or super top-up health plans.
- Deductible – Deductible, in this context refers to a base amount over which a top-up or super top-up policy comes into force. For example, Mr. Krishna has a normal health insurance policy of Rs 3 lakh and a top-up/super top-up policy of Rs 7 lakh with the deductible set at Rs 3 lakh. In this case, his top-up/super top-up plan will come into force only if the bill is over and above Rs 3 lakhs. If the bill is under Rs 3 lakh, i.e. below deductible, no benefit will be paid through the top-up/super top-up plan.
- Base plan – While it is not mandatory for an individual to have a base health insurance plans in order to avail a top-up/super top-up, it is recommended that a base plan is in place to cover amounts below the deductible.
- Lower premium – One can get a top-up health insurance policy at lower premiums, with the premium amount depending on the deductible. A higher deductible results in a lower premium and vice-versa.
Top-up Vs Super Top-up Health Insurance Policies:
While similar in concept, there are a few key differences between a top-up and super top-up health policy, as highlighted in the table below.
| Parameter | Top-up policy | Super top-up policy |
| Working basis | Works on the principle of “per claim” or “per hospitalization” | Multiple claims are permitted |
| Lapse on claim | Policy lapses after 1 claim for the cover provided | Policy lapses when the entire cover is exhausted (multiple claims entertained) |
| Settlement | Settles claim only if single bill amount is over and above the deductible | Settles claim if total bill amount exceeds the deductible limit |
Example: Rakesh has a Top-up and Super Top-up health policy with Rs 10 lakh cover and a regular policy with a cover of Rs 5 lakh. He undergoes treatment for hospitalization, consider the following scenarios.
|
|
|
When to opt for a Top-up Health Insurance Policy:
Individuals can opt for a top-up or super top-up policy under the following circumstances.
- When their regular health insurance policy doesn’t offer adequate protection. In such cases, they can choose one of these plans to enhance their protection.
- When they want to increase their cover without having to pay higher premiums. The premium for a top-up or super top-up plan is cheaper than the premium for a normal plan with the same cover, helping them save money.
Popular Top-up and Super Top-up Health Insurance Policies in India:
Some of the popular top-up and super top-up health insurance policies in India are mentioned below.
- Bajaj Allianz Extra Care – This policy offers cover ranging from Rs 10 lakh to Rs 15 lakh with deductibles ranging between Rs 3 lakh and 5 lakh. Working on a per claim basis, it comes with a family floater option.
- ICICI Lombard Healthcare Plus – This policy offers flexible sum assured and deductibles to suit the financial requirements of different individuals, covering multiple scenarios.
- Star Health Super Surplus – This plan comes with a cover ranging between Rs 7 lakh and Rs 10 lakh, with the deductible starting at Rs 3 lakhs.
- Religare Enhance – This custom designed scheme comes without any sub-limits, ensuring that the entire family is protected, with the option to choose a cover between Rs 1 lakh and Rs 30 lakh, depending on their requirement.
- Apollo Munich Optima Plus – This plan covers multiple scenarios, offering cashless benefits and an option to convert the scheme into a zero deduction health insurance policy upon retirement.
- United India Insurance Super Top Up – This plan can be used to protect both an individual and his/her family, coming with a floater option and offering cashless treatment across multiple locations in India.
- HDFC Health Suraksha Top-up Plus – This plan comes with a family floater option, with deductible starting from Rs 1 lakh and sum assured ranging between Rs 2 lakh and Rs 10 lakh.
