How to enhance your health insurance cover with top-up and super top-up policy? MintGenie explains
health insurance cover of Rs. 3 – 5 lakhs for your family a few years back? At that time, the cover amount would have been adequate, but not today. Consider another scenario: Your employer provides you a health insurance cover of Rs.
3 – 5 lakhs for your family, or you are covered for a similar amount under a State Government health insurance scheme. In all the above scenarios, considering the current and future expected medical inflation, the cover amount will not be adequate. In such a scenario, you can enhance your health insurance coverage with a top-up or a super top-up health insurance policy.
A top-up health insurance policy pays only when the claim amount exceeds a specified amount. The specified amount is known as a deductible. For example, you have bought a top-up health insurance policy with a sum insured of Rs.
10 lakhs and a deductible of Rs. 5 lakhs. In this case, the top-up policy will pay only whenever the claim amount exceeds Rs.
5 lakhs. Consider the following scenarios for claim payment. Scenario 1: The claim amount is Rs.
4 lakhs. The top-up policy will not pay any amount as the claim amount of Rs. 4 lakhs is lower than the deductible amount of Rs.
5 lakhs. Scenario 2: The claim amount is Rs. 6 lakhs.
The top-up policy will pay Rs. 1 lakh (Claim amount Rs. 6 lakhs – Deductible amount Rs.
5 lakhs). In the same year, if there is another claim of Rs. 3 lakhs, the top-up policy will not pay anything as the claim amount is lower than the deductible of Rs.
5 lakhs. At the start of the article, we saw some scenarios where the health insurance coverage amount is not adequate. In such a scenario, you can buy a top-up health insurance plan.
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