A top-up medical insurance coverage is a complement medical insurance that helps coverage holder enhance the insurance coverage protection protecting medical insurance premium at inexpensive stage. It helps the insurance coverage coverage holder in bringing down the coverage premium for increased medical insurance protection. Nonetheless, if we go by the funding specialists’ view, one ought to look minutely on the deductible restrict and sum insured earlier than shopping for a top-up well being plan.
Advising top-up medical insurance coverage patrons to stay vigilant about deductible restrict and sum insured Pankaj Mathpal, MD at Optima Cash Managers mentioned, “One wants to stay further vigilant concerning the deductible restrict and the sum insured whereas shopping for a top-up medical insurance plan as a result of there are two kinds of top-up well being plans accessible — deductible restrict relevant as soon as in a monetary yr and deductible restrict relevant each time the well being declare is made.”
Mathpal mentioned that top-up medical insurance insurance policies might be categorised into two classes — top-up and tremendous top-up. In top-up plans, the insurance coverage firm pays for the invoice going past the deductible restrict. For instance, if a high plan has ₹1 lakh deductible restrict, in that case as much as ₹1 lakh invoice must be paid by the coverage holder whereas the fee above ₹1 lakh will probably be paid by the insurance coverage firm. He mentioned that if an individual has taken tremendous top-up plan, then the deductible restrict will not get utilized after it has been utilized as soon as in a yr whereas within the case of top-up plan, it might be utilized each time the declare is raised. For instance, if a coverage holder has submitted two invoice of ₹1.5 lakh and ₹1 lakh invoice in single monetary yr and its deductible restrict is similar ₹1 lakh. Then, within the case of tremendous high plan, the coverage holder will probably be given ₹50,000 reduction on first event whereas on the second event; she or he will probably be given total ₹1 lakh quantity of the invoice because the deductible restrict is utilized as soon as in a yr. However, within the case of top-up plan, reduction will probably be solely ₹50,000 on first event as there is no such thing as a fee as much as ₹1 lakh deductible restrict.
Advising insurance coverage coverage holder to purchase each base medical insurance and tremendous top-up well being coverage Kartik Jhaveri, Director — Wealth Administration at Transcend Consultants mentioned, “One ought to have each base medical insurance coverage and tremendous top-up medical insurance plan. It helps coverage holder to pay the deductible restrict from the bottom medical insurance plan. However, in case the invoice goes past the sum insured within the base well being plan, then one can use the tremendous top-up plan to pay the additional quantity through the use of deductible restrict profit.”