TOP-UP AND SUPER TOP-UP HEALTH INSURANCE
PLAN YOUR MEDICAL INSURANCE
No one should have to choose between medicine and other necessities. No one should have to use the emergency room every time a child gets sick. And no one should have to live in constant fear that a medical problem will become a financial crisis. – Brad Henry
WHAT IS TOP-UP POLICY AND SUPER-TOP-UP POLICY ?
Top-Up and Super Top-Up policies are additional health insurance plans designed to provide extra financial protection beyond your primary health insurance coverage. They act as a safety net, offering a significant sum of money to cover expenses that exceed your base policy’s limit.
Top-Up Policy
How it works: Once your primary health insurance policy’s coverage limit is exhausted, a top-up policy kicks in, providing a lump sum payment to cover the remaining costs.
Key features:
Requires a base policy to be in place.
Offers a fixed sum of money as a top-up.
Often has a deductible, meaning you need to pay a certain amount out of pocket before the top-up coverage is activated.
Super Top-Up Policy
How it works: Similar to a top-up policy, a super top-up policy activates when your primary health insurance coverage is exhausted. However, it offers a more flexible and comprehensive approach.
Key features:
Requires a base policy to be in place.
Offers a cumulative sum of money to cover multiple claims within a policy year.
May have a deductible or a waiting period.
Example:
Your primary health insurance has a coverage limit of ₹5 lakh.
You have a top-up policy with a coverage of ₹10 lakh.
If a medical emergency costs ₹12 lakh, your primary policy will cover ₹5 lakh, and the top-up policy will pay the remaining ₹7 lakh.
Benefits of Top-Up and Super Top-Up Policies
Enhanced financial protection: They provide a significant sum of money to cover high-cost medical treatments.
Cost-effective: They can be more affordable than increasing your base policy’s coverage limit.
Flexibility: Super top-up policies offer more flexibility with cumulative coverage.
Considerations:
Deductibles and waiting periods: Be aware of any deductibles or waiting periods that may apply.
Coverage limits: Ensure the top-up or super top-up coverage is sufficient for your needs.
Premium costs: Compare premiums from different insurers to find the most suitable option.
By understanding the differences between top-up and super top-up policies, you can make an informed decision about how to enhance your health insurance coverage and protect yourself financially in case of unexpected medical expenses.
What is the exact difference between a top-up policy and super top-up policy ?
The key difference between a top-up policy and a super top-up policy lies in their coverage structure:
Top-Up Policy:
Single-event coverage: Provides a fixed sum of money to cover expenses that exceed your primary health insurance policy’s coverage limit for a single event or illness.
Non-cumulative: Once the top-up amount is used, it cannot be used again within the policy year, even if you have other medical expenses.
Super Top-Up Policy:
Cumulative coverage: Offers a cumulative sum of money to cover multiple claims within a policy year, up to a specified limit.
Flexibility: Provides more financial protection for individuals with multiple medical expenses or recurring health conditions.
Example:
Top-Up Policy: If your primary insurance covers up to ₹5 lakh and you have a top-up policy of ₹10 lakh, you can only use the ₹10 lakh once during the policy year, even if you have multiple medical expenses.
Super Top-Up Policy: If your primary insurance covers up to ₹5 lakh and you have a super top-up policy of ₹20 lakh, you can use the ₹20 lakh cumulatively throughout the policy year to cover multiple claims, up to the maximum limit.
In summary, a top-up policy provides a single lump sum payment for a single event, while a super top-up policy offers a cumulative sum for multiple claims, providing greater flexibility and protection for individuals with recurring medical expenses.
As super top-up policies provide better benefit of multiple claims , they are popular with the genral public
Some Examples of Super top-up policies :
Most health insurance companies,that offer regular health insurance policies , also provide Super Top-up policies. For further details, you may contact the health insurance companies on their websites or through their agents.
4 .ICICI Lombard Health Booster Policy
Some Examples of top-up policies :
PREMIUMS FOR HEALTH INSURANCE POLICIES : COMPARE BEFORE BUYING
To buy a Health insurance policy , you have to pay a fee called premium to the insurance company affront . Now IRDAI has allowed the monthly / quarterly / half yearly payment on the policies . Each insurance policy carries its own premium to be paid for a person of particular age . As each insurance policy was differing in coverage / inclusions / exclusions / co-pay / pre-existing diseases coverage / waiting period etc , it was difficult to compare the premiums of two policies even when the covered amount is same .
To mitigate the problem , Insurance Regulatory & Development Authority of India ( IRDAI ) has come up with standard policies to be mandatorily issued by all general and health insurance companies that deal in Health insurance . While terms & conditions will be same , premiums can differ .
When you compare , you will come to know the actual variation in premium of each policy issued by various insurers . Hence it is prudent for you to get quotes from as many as possible companies before deciding on a insurance policy . Otherwise you will end up with paying a huge premium .
