The purchase of Health Insurance has increased in recent days. This is because of increased awareness that Health Insurance is a substantial financial tool which becomes necessary to manage the finances. Besides, it also helps from being pushed into medical debt.
It is evident that in the event of a medical emergency, Health Insurance will provide the necessary financial help. What if the medical bills exceed the Health Insurance coverage? The possibility of such unfortunate situations happening to an individual is uncertain. But such a circumstance may become probable due to the rise in medical inflation.
Having two Health insurance policies or a higher Sum Insured cover in a Base Health Insurance policy will help tackle such situations. However, higher Sum Insured will lead to a higher premium because the Sum Insured is one of the key factors while calculating the Health Insurance premium. On the other hand, opting for another policy might be expensive, as the premium will be calculated according to the chosen Sum Insured and the people you include to get covered.
To address the needs, Health Insurance Companies are offering Top-up Health Insurance policies. A top-up Health Insurance Policy works on the same indemnity principles as that of a Base Health Insurance Policy (existing Health Insurance policy) but acts as a supplement or an addition to the Base Health Insurance policy.
A Base Health Insurance plan is a regular standalone policy crafted to provide coverage against a multitude of medical expenses along with a range of benefits. Whereas a Top-up Health Insurance policy offers extended coverage and financial security beyond the threshold limits of Base Health Insurance or Group Mediclaim policy.
As the name implies, a Top-up Health Insurance policy is an additional Health Insurance policy that can be added to the Base Health Insurance policy. For an individual to purchase a Top-up Health Insurance plan, a Base medical insurance policy becomes essential. It can be added to the existing Individual, Family floater or Group Mediclaim policy.
A claim under the top-up policy becomes admissible only when the medical expenses reach the threshold limit of the base policy. In simple words, if the insured’s claim amount exceeds the threshold limit of their base policy, then the insured can claim the excess amount from the top-up policy. Thus, providing additional financial shield and extended coverage.
Besides the wide coverage, Top-up Health Insurance policies also provide many benefits, as they are specially crafted to offer additional coverage at an affordable premium. Most Health Insurance companies do not make medical screening mandatory to avail a top-up policy. Moreover, these policies come with a deductible limit, which means that the company is liable to pay the claim amount only if the expenses reach the deductibles. The premium will be low if you choose a high deductible.
A noteworthy fact is that there is no compulsion that the top-up policy should be purchased from the same insurance provider as the base Health Insurance. Purchasing a Top-up Health Insurance policy is the best way to extend medical and financial coverage at a nominal cost. The premium paid towards such policies is exempted from income tax under Section 80D of the Income Tax Act, 1961.
A Top-up Health Insurance policy is a requisite investment and a wise decision to tackle high medical bills. Star Health’s Top-up policy, Super Surplus Insurance Policy, is designed to offer up to rupees one crore Sum Insured cover at an affordable premium. Moreover, pre-insurance medical screening is not required to avail this policy. Do not have second thoughts when it comes to protecting your health.
