Should You Consider Super Top-up Plan To Enhance Health Cover?

By Adhil Shetty | April 3, 2018

Every basic medical insurance policy has a threshold. A super top-up medical insurance helps when the medical bills cross the threshold limit.  Read on to know more.

With medical inflation on the rise and hospitals getting expensive, buying a Health Insurance plan has become a necessity. But there can be some trying times when your basic health insurance threshold limit is not helping you in settling the huge amount of medical bill. You need to be prepared to face such a situation when your health policy fails to provide you complete cover. This is where a Super Top-up Medical Insurance comes to your rescue by covering all the additional bills and amount beyond the insurance threshold limit.

In this article, we take a look at different features of super top-up medical insurance:

What Is Super Top-up Health Plan?

Super top-up health insurance plan provides cover against the hospitalisation expenses over and above the threshold limit. Let us understand this better with an example. Suppose you are required to be hospitalised for a treatment and you have a health policy of Rs 3 lakh. Once your treatment is over, hospital presents you a bill of Rs 5 lakh, which is Rs 2 lakh higher than your health policy cover. In such a scenario, if you have taken a super top-up health insurance with a deductible of Rs 3 lakh, then hospital bill exceeding Rs 3 lakh would have been paid from the super top-up policy, which is Rs 2 lakh in this case.

Understanding Deductible In Super Top-Up Health Insurance

The deductible is the threshold limit of your health insurance policy beyond which super top-up health policy comes into action. Deductible amount depends on your option selected at the time of buying a policy. Normally insurance companies offer a deductible option in the range of Rs 1 lakh to Rs 10 lakh. The higher the deductible, the lower would be the premium and vice-versa. For example, you have a health policy of Rs 5 lakh. You also have a super top-up policy with a deductible of Rs 5 lakh and a cover of Rs 20 lakh. If for a hospitalisation, you have been presented with a bill of Rs 15 lakh, then your basic health policy will pay Rs 5 lakh and your super top-up policy will pay the remaining Rs 10 lakh.

Top-up Vs Super Top-Up Health Insurance

Top-up health insurance plan considers the deductible during each hospitalisation case. In case of a super top-up plan, the aggregate hospitalisation bill during the cover year is considered for calculating the deductible. Let us understand this better with the two cases given below. Assuming you are hospitalised twice in a year, and each time the bill was Rs 4 lakh. You have a health policy of Rs 3 lakh.

Case I- Suppose you had taken a top-up health policy of Rs 10 lakh with Rs 3 lakh as deductible. So, during 1st hospitalisation you will get the cover from the basic health policy of Rs 3 lakh and Rs 1 lakh will be paid through the top up policy. In 2nd hospitalisation case, since the basic health cover is exhausted, so you have to pay the bill of Rs 3 lakh from your pocket and remaining Rs 1 lakh will be paid through the top up policy.

Case II- Suppose you have taken a super top-up health policy of Rs 10 lakh with Rs 3 lakh as deductible. In first hospitalisation case, you’ll get the cover of Rs 3 lakh from basic health policy and remaining Rs 1 lakh will be covered under the super top policy. In the second hospitalisation case, you’ll get the entire bill amount of Rs 4 lakh covered under super top-up health policy as aggregate bill amount during the cover year is higher than the threshold deductible limit.

Why You Should Consider A Super Top Up Health Policy?

A super top-up policy is more affordable as compared to what you would pay for the same level of basic cover. For example, if your age is between 25 to 35 years, then basic health insurance cover of Rs 20 lakh may cost you around Rs 12,000. But, if you buy a health policy of Rs 5 lakh along with the super top-up policy of Rs 15 lakh (insurance cover above Rs 5 Lac deductible), then the total premium would be around Rs 10,000. So, you can easily save Rs 2,000 on premium payment.

Things To Keep In Mind

Super top-up plan is also available as family floater policy. The premium paid for this plan is also eligible for the tax benefit u/s 80 (D). Always check the waiting period, inclusions and exclusions while buying a super top-up health policy. The extent of the cover may vary from company to company, so make your choice after conducting detailed comparison and analysis.

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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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