Why it is good to have a top-up health insurance

Here’s another option for you to enhance your health cover

As the name suggests, a ‘top-up health insurance’ policy comes in handy when you have exhausted your Sum Insured in your basic health insurance policy. Typically, it could be due to single or multiple hospitalisations in a year for which you might have utilised your basic health cover or in most of the cases provided by your employer’s Group Health Insurance Scheme.

Top-up health insurance policies will have a ‘Deductible’, chosen as per your choice. For example, if you already have a basic health insurance for Rs. 5 Lakhs, you should opt for a 5 lakhs deductible. This means, you cannot claim from the top-up policy until your treatment expenses for a particular year reaches 5 Lakhs. But, once it reaches 5 Lakhs, your top-up policy will become active and you can claim further from the same.

Top-up policy is a good option when the probability of your exhausting the basic cover is remote, but possible. The premium cost of top-up policies are low compared to basic health insurance policies.

Hence, it will be cheaper to go for a 5 Lakhs basic + 5 Lakhs top-up instead of buying a health insurance policy for 10 Lakhs.

However, the terms of applicability of claims under a top-up policy varies with every insurer. So, it is important to read and understand the terms of claims admissibility before choosing the plans.

Personal Accident Benefit

Some health insurance plans offer accidental death and disability benefits as a standard inclusion or as an additional cover. A specified percentage of SI or a lump sum amount will be paid for accidental death and specified benefits extended in case of accidental disability.

Maternity & Child Care Cover

Maternity and Child Care covers allow expenses related to pregnancy, child birth and health cover for new born baby. Usually, these expenses are excluded in a standard individual health insurance policy. However, waiting period applies for this additional cover as per terms of the respective insurers.

Continue reading “Maternity & Child Care Cover”