Sage-Tips

What is the benefit of a top up plan in health insurance?

To expand the sum insured or total cover value, health insurance companies have started offering top ups to support the base policy. Top up for health insurance plans, are clearly designed with an idea to give you additional cover in case your existing policy gets exhausted or proves insufficient for medical treatment.

Is it better to pay more monthly for health insurance?

When you’re willing to pay more up front when you need care, you save on what you pay each month. The lower a plan’s deductible, the higher the premium. You’ll pay more each month, but your plan will start sharing the costs sooner because you’ll reach your deductible faster.

How does super top up policy work?

A super top-up plan covers the total of all hospitalization bills once the deductible is paid. In other words, when the total admissible claims surpass the deductible limit, this plan becomes active for subsequent claims. The deductible is applied to the total admissible claims in one year.

Why top up plans are cheaper?

In reality, top-up health plans are indemnity policies and provide the same benefits as regular reimbursement plan. The only difference is the high deductibles that make these plans cheaper. The underwriting may differ slightly as the base policy reduces risk for the insurer.

Can we top up mediclaim policy?

Usually, a single hospitalization cover is provided in top-up health insurance plans. Your top-up plan comes in to play when your hospital bill exceeds the deductible limit (during the hospitalization). So, if you make two claims in a year of Rs. 1 Lakh and 2 Lakh, and your top-up plan have a threshold limit of Rs.

What plan will have the highest out of pocket costs?

The highest out-of-pocket maximum for a health insurance plan in 2022 plans is $8,700 for individual plans and $17,400 for family plans. Plans with lower premiums tend to have higher out-of-pocket maximums and vice versa.

How do I choose between top up and super top up health insurance?

Selecting the Best Option According to the experts, to cover the risk of chronic ailments requiring more than one hospitalization in a year, then a Super top-up plan should be your choice. Also, the cost of the premium is low in comparison to buying a separate health plan with higher coverage amount.

Is super top up cashless?

Yes, Cashless can be applied through hospital.

What are top-up and Super top-up health insurance plans?

Top-up and super top-up plans are designed to enhance the coverage of the existing health insurance policy of the policyholder. These plans can be of immense help if the medical expenses incurred by a policyholder exceeds the base cover offered by his/her policy. Otherwise, he/she may have to bear the additional expenses out of his/her pocket.

Should you top-up your health insurance policy?

Goel added, “Top-up plans are ideal for those people who own a base/regular health insurance policy but do not have sufficient cover to deal with a huge medical emergency. For instance, it is for reimbursement of expenditure which arises out of single illness beyond the limit of the existing cover.”

What happens if you buy a top-up plan from a different insurer?

Chhabra said, “If you buy a top-up plan from a different insurer, the claim payout from your top-up plan may not be cashless. Moreover, at the time of porting, continuity benefit is only received on the base policy sum insured and not the top-up plan.

Is it cheaper to top-up health insurance or buy a base policy?

There are insurance policies where a deductible applies to the base policy also. Naval Goel, CEO, PolicyX.com said, “While a health insurance top-up plan would be cheaper, the room rent allowed, in many cases, would be a percentage of the base policy only, and not the aggregate of the base policy plus top-up.