Pratik TImbadia
The purpose of top-up and super top-up health insurance plans is to offer extra financial protection in the event of medical emergencies and to supplement your base health insurance plan. Nonetheless, the two categories of plans differ significantly in a few important ways.Find differences between top up and super topup health insurance policy :
Top-up health insurance plans
• In a policy year, only pay for one hospitalization claim that exceeds the threshold limit (i.e., the Deductible amount).
• The deductible is the amount you must pay out-of-pocket before your insurance provider begins to cover your medical costs.
An illustration of top-up health coverage
• Base amount insured under health insurance plan: Rs. 5 lakh
• Sum insured under top-up health insurance plan: Rs. 10 lakh
• Amount deductible: Rs. 3 lakh
Scenario:
• You suffer a heart attack and are admitted to the hospital, where you spend Rs. 7 lakh on medical bills.
• The first Rs. 5 lakh of your medical bills will be paid for by your basic health insurance policy.
You will be reimbursed for the remaining Rs. 2 lakh in medical expenses by your top-up health insurance plan.
It’s crucial to remember that a top-up health insurance plan’s deductible must be less than or equal to your base health insurance plan’s total insured amount.
Super top-up health insurance plans
• Pay for several hospitalization claims that exceed the cap within a policy year. Throughout the course of a policy year, the deductible amount may be combined from several hospital bills.
Super top-up health insurance has advantages over top-up health insurance.
• Broader coverage: Because super top-up health insurance plans pay multiple hospitalization claims over the threshold limit in a policy year, they provide wider coverage than top-up health insurance plans. This is especially helpful for those with chronic illnesses and older adults who are more likely to require repeated hospital stays.
• Cheaper premiums: Super top-up health insurance plans generally offer cheaper premiums than top-up health insurance plans because the insurance company’s liability is reduced. This is due to the fact that you pay a certain amount (the deductible amount) out of pocket before the insurance company covers your medical bills.
• Greater flexibility: Because you can combine the deductible amount from several hospital bills within a policy year, super top-up health insurance plans provide greater flexibility than top-up health insurance plans. This is advantageous provided that your individual hospitalization claims during a policy year do not surpass the threshold limit.
The following are some situations where having super top-up health insurance can be advantageous:
For instance:
• Base amount insured under health insurance plan: Rs. 5 lakh
• Super top-up health insurance plan: Ten lakh rupees are insured.
• Amount deductible: Rs. 3 lakh
Situation:
• You suffer a heart attack and are admitted to the hospital; your medical bills total Rs. 5 lakh.
• The whole cost of your medical bills will be covered by your basic health insurance plan.
• A few months later, you are admitted to the hospital with a kidney stone, and your medical bills total Rs. 1 lakh.
You will spend a total of Rs. 6 lakh on medical expenses this year.
• Even though each claim did not go over the deductible, your super top-up health insurance plan will pay the remaining Rs. 1 lakh for your medical bills.
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Instance 2:
• Base amount insured under health insurance plan: Rs. 5 lakh
• Super top-up health insurance plan: Ten lakh rupees are insured.
• Amount deductible: Rs. 3 lakh
Situation:
- You suffer a heart attack and are admitted to the hospital. Your medical bills total Rs. 2 lakh.
- A few months later, you are admitted to the hospital for a kidney stone. Your medical bills total Rs. 1 lakh.
- A few months later, you are admitted to the hospital for dengue fever. Your medical bills total Rs. 1 lakh.
You will spend a total of Rs. 4 lakh on medical expenses this year.
• If the annual total of your medical bills surpasses the deductible, your super top-up health insurance plan will pay for them all.
Conclusion:
• Compared to top-up health insurance plans, super top-up health insurance plans have more flexibility, lower premiums, and greater coverage. A super top-up health insurance plan is a good option to think about if you’re looking for a way to add to your base health insurance plan and obtain additional financial coverage in the event of multiple hospitalizations.
