It is important to understand that more than the company-provided health insurance you currently have may be required to keep up with the rising cost of medical care. You’ve been researching health insurance plans, but their prices have put you off.
Or you have health insurance but would like to increase your coverage but are concerned about the expense. And what is top-up in health insurance?
For instance, Person A had the same thought process and came to my office one day to ask me about policies. He looked troubled and unhappy as he told his experience, and felt that even though he & his family are protected under Medical coverage of Rs 3 lakhs, he didn’t think it was enough.
The recent visit to the hospital was the catalyst for his apprehension. The final hospital price for his care exceeded Rs 15 lakhs by the time he was released. Even though his relative had health insurance, it was not enough to cover all the costs. *
What to do in such situations? Supplemental insurance policies are one viable option.
How can health insurance top-up plans prove useful?
When a single claim exceeds a certain threshold amount, the top-up portion of your mediclaim policy kicks in. There is a deductible associated with this plan, meaning the policy will only pay out once the deductible amount has been met. *
Take this into account while purchasing supplemental plans: Top-up plans can be purchased independently of primary medical insurance coverage. Each plan term has its limit on the amount you can claim. *
In the same way that it would be foolish to get behind the wheel of a car without first checking for pedestrians, it would be unwise to go through life without a mediclaim policy and a top-up plan when medical expenditures have risen to such an alarming degree.
Pluses of Supplemental Insurance
Insurers can shield themselves from the frequent but relatively minor costs associated with hospitalisation thanks to the deductible caps included in these policies. Policyholders receive savings from this factor through reduced premium costs. * ##
Due to the dramatic rise in healthcare costs, supplemental insurance plans might significantly aid in meeting these new obligations.
Individual plans and family floater health insurance plans offer it
Health insurance top-up plans are not required to purchase this policy. You are not required to obtain this coverage from the same insurance provider as your medical insurance.
Converting a supplement policy to an independent health insurance policy is an option with some insurance companies.
Section 80D provides tax breaks for some policies, per the Income Tax Act. **
Increase your health coverage by a factor of four for double the cost of your current premium. The best option is to get separate health insurance policies for everyone in the family and then pool the money together for a “family floater.” *
You want only to acquire a plan that covers potential medical bills. Therefore, verifying the supplemental coverage is crucial before committing to the policy.
The verdict is in
Increases in inflation could drive up the cost of healthcare. The prices of everything, from hospital stays and prescription drugs to diagnostic procedures, are rising annually. Due to the ever-increasing healthcare expense, supplemental plans are now a need that, if ignored, may prove extremely costly.
The health insurance top-up policy is helpful if you have health insurance through your employer but feel it needs to be improved. However, remember that these health insurance plans will kick in once a certain point is reached.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
‘Insurance is the subject matter of solicitation.’ For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘