A general health policy only services up to a limit and if the expenses exceed the insurance limit, you will have to pay from the pocket. On the other hand, you cannot take policies for higher amounts as it costs more. Top ups are designed to solve this problem. Available at reasonable premium, these top ups provide higher amounts in times of need. The top up becomes valuable when the expenses are more than the threshold limit of regular health policy. Top up policies pay after reaching a certain prearranged limit. Those who want additional insurance or thinking on the lines the existing policy is not sufficient can go for these.
For example: A person with Three lakh insurance had to get hospitalized, and the expenses were 4.5 lakhs. The insurance company will pay the Three lakhs and the remaining have to be borne by the person himself. But if you have a top up policy with 3-lakh threshold limit, the balance amount above can be claimed through this. Specialties of top up policies… · The premiums for these are less than the regular ones providing higher insurance for less premium. · There is no rule that top up has to be taken with the same company of regular policy but can be bought from other companies as well. · These can be taken for individual or as family floater. · Available from Three lakhs to 15 lakhs. ·
You can take top up without a regular policy, but the policy comes into effect only after the threshold limit · The preexisting diseases are covered after Four years · Each hospitalization is measured separately but not cumulatively. Example: In a top up of Three lakh threshold limit, two hospitalizations of Two and 2.5 lakhs are not considered as 4.5 lakhs, but as separate entities. · To overcome this limit, some companies have come up with super top up where the limit is measured cumulatively. But these policies have high premium. ·
Generally, medical tests are not mandatory for those under 45 years of age. · Exempted from income tax under section 80 D. Things to remember: · Consider the top ups as tools that give high coverage with less premium but not as a true health insurance policy. Normal health policies cover lowest of expenses while top ups only cover after threshold limit. · If a family floater top up is chosen, check whether it is applicable to all members of the family as some policies don’t cover parents.