In the recently concluded Union Budget, the Government has allocated Rs.2,83,846 lakh crore for the healthcare sector. This figure is a massive jump from the previous years, owing to the rising costs of healthcare in this country. Nonetheless, even with government initiatives, individuals should have health insurance policies in place to help them counter the expenses of seeking quality healthcare services.
However, the sum insured by a healthcare plan often proves insufficient while dealing with certain diseases. In such cases, having a health insurance top-up plan can aid individuals to cover expenses after exhausting the limit of their primary healthcare policy.
What is a health insurance top-up plan?
Top-up health insurance plans extend financial coverage when the traditional plan reaches the limit of its sum-insured. Any expenses incurred after this point are not covered by the respective insurance policy, and this can pose a financial strain on the respective policyholder. Top-up insurance plans are specially designed to tackle such costs.
To avail one, individuals must select a base policy and then, based on its insured amount, choose a top-up plan accordingly. It will allow policyholders to exhaust their primary policy’s threshold amount and then use this top-up health insurance plan to cover the additional expenses.
A point to remember while purchasing a policy like this is that the top-up amount must not be more than the sum insured figure of the primary policy. For example, if you have an immediate insurance plan that offers coverage of Rs.10 lakh, then your top-up plan must not be more than that amount. In this way, you can use both your policies if your expenses are higher than Rs.10 lakh. Nonetheless, do not forget to factor in the deductible amount while making this calculation.
However, before purchasing this health insurance plan, buyers need to evaluate some pointers to make an informed decision.
Top 5 points to check while opting for a top-up health insurance policy
Here are some important points that one needs to keep in mind while shopping for a top-up policy.
Every insurance policy involves paying a premium after a period, which can be monthly, quarterly, half-yearly and so on. Since this is a recurring cost, individuals need to factor it in when they plan to buy health insurance top-up.
- Coverage extension
Along with factoring in the cost, one needs to learn the coverage extension of a policy to find the one that suits their needs. In this regard, they need to consider the amenities it is offering like cashless treatment, coverage for pre and post hospitalisation expenses, the number of family members included, etc.
- Cover for pre-existing conditions
Along with this, one needs to take into account whether his/her existing policy offers pre-aliment coverage or not. If not, then that policyholder can opt for a top-up plan that includes this benefit.
- Exclusions or restrictions
Along with its long list of benefits, insurance policies come with limitations as well, making it a vital point to consider in this regard. It will help individuals to learn more about the points that are not covered here, and they can then make a decision accordingly.
For example, a particular health insurance top-up plan may not include coverage for dental treatment in their policy terms. Therefore, it is not an ideal plan for individuals prone to suffering from dental issues.
- Limit of the deductible amount
The deductible is the amount that policyholders need to pay from their own pocket, while their insurance policy covers the rest. Top-up health insurance plans may come with a deductible clause, which kicks in when the primary policy crosses the sum-insured limit. Check for this amount before availing the insurance policy.
With these few factors into consideration, individuals can easily opt for a top-up health insurance policy that can help meet medical expenses even after the primary insurance policy coverage is exhausted.
Health insurance top-up plans is an effective way to deal with the rising costs of healthcare. However, it is vital to have a complete understanding of this policy and its aspects. Doing so will allow individuals to undertake an informed decision and avoid future complications.