Hyderabad: 'Health is wealth', but we will realise this only after falling ill, but those who can spend more money will recover by undergoing treatment in corporate hospitals. But, if we have no savings and no health insurance policy at our disposal, then we will be left in the lurch. Taking Top-Up and Super Top-Up will be handy if we have to cough up extra bucks for further treatment though we already have health insurance.
After Covid and now, Omicron, we need to take appropriate precautions, and there comes, health insurance policy. At the same time, since it is not possible to change an existing policy, it is necessary to select Top-Up policies as additional protection.
Top-Up policies are a way to avoid the financial burden of ever-increasing medical expenses. These will help us to bear the additional cost of completing the entire existing insurance policy. Be a family floater that applies to an individual policy or the whole family. We can top them up.
Instead of buying a new policy for a higher amount, the existing policy can be paired with this Top-Up policy at a lower premium. Taking out a full-fledged insurance policy with the same value will reduce the premium cost by 30 to 40 per cent.
Top-Up policies take full advantage of the basic policy and operate beyond a certain limit. For instance, suppose you take a Top-Up policy of Rs 10 lakh. Suppose the mandatory exemption for this is fixed at Rs 5 lakhs. Suppose we spend more than Rs 5 lakh at a time when we are admitted to the hospital. The Top-Up policy will take care of that excess amount.
If we do not have a health insurance policy. Then is it possible to take a Top-Up policy with a certain amount of exemption? The important thing to remember here is that taking a Top-Up policy is not a substitute for full-fledged health insurance.
Super Top-Up policies are slightly different. They provide compensation only when medical expenses exceed the limit for the year. For example, suppose a person has a basic policy of Rs 5 lakh and once you are admitted to a hospital and while undergoing treatment you have spent Rs 2 lakhs initially thereafter Rs 4 lakhs and as it crosses Rs 5 lakh in a year, the Super Top-Up policy pays Rs 1 lakh as compensation.
Health Insurance Top-Up policy
Whichever of the Top-Up policy or Super Top-Up policy we choose, we need to know the rules and what applies and what does not. What is the waiting period for pre-existing diseases? Before you get admitted to a hospital, do you take into account the costs of treatment? The decision should be made after considering the premium payment and claim settlement.
The premium paid for these Top-Up policies can claim an exemption under Section 80D.
For basic policy, there is no requirement to take a Top-Up policy from any insurance company. You can choose these policies from the insurance company of your choice.
These can be combined with personal, family floater and group insurance policies. If the exemption limit is higher .. the premium will be reduced accordingly.
Existing policy: Top-Up and Super Top-Up policies will become handy when we need to stay more days in hospitals while undergoing treatment apart from the existing policy.
Also read: Health insurance claim: Six reasons why your insurer may not settle the entire claim amount
