Health insurance top up plan: What to check when buying it

One must be prepared for any medical emergencies in life and protect themselves by having a health insurance in place. However, sometimes the health insurance may not be enough to cover all your medical expenses. You may need to top-up your existing health insurance in such cases. Read our story to see how you can top-up your health insurance plan.

Health insurance top-up plan

A health insurance top-up plan is an additional cover that provides financial protection beyond the threshold limit of an existing health insurance policy.

Deductible clause

A deductible is the amount the policyholder must pay out of pocket or through the base policy before the top-up plan comes into effect. Ensure that the deductible matches the sum insured of the base policy to avoid gaps in coverage.

Coverage options

It is essential to assess the types of medical expenses covered, including hospitalisation, critical illnesses, daycare procedures, and pre- and post-hospitalisation. Some plans may also include maternity benefits or alternative treatments like Ayurveda or Homeopathy.

Super top-up plans

Unlike regular top-up plans that apply the deductible for each claim, super top-up plans calculate deductibles on a cumulative basis for all claims within a policy year. This makes them more advantageous for frequent or multiple claims.

Check network hospitals

One should ensure that the insurer has an extensive network of empanelled hospitals offering cashless treatment. Proximity to network hospitals can be a deciding factor in emergencies.

Compare premiums

Evaluate the premium costs against the sum insured and benefits offered. While affordability is essential, ensure the plan provides adequate coverage to meet healthcare needs.

Points to note

• Read the policy document carefully to understand what is covered and what is excluded.
• Choose an insurer known for a hassle-free claims process, high claim settlement ratio, and robust customer support.

Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.