Health insurance is a must-have in today’s world, more significantly so because healthcare costs have arisen due to inflation. With time, we may need more than the coverage offered by our existing health insurance policy to cover all of our medical expenses. That’s why the health insurance top-up approach comes into play. And with health insurance online facilities, it is easier to have a medical top-up policy.
In this article, we will learn what health insurance top-up is and why it is a good idea.
What Is Health Insurance Top-Up Policy?
Health Insurance Top-Up is the additional health insurance coverage that can be purchased through your existing health insurance policy. It provides coverage for expenses that exceed the sum insured under the primary health insurance policy.
It can sound like Rider, but you have to understand that Rider is an add-on benefit that we can take while purchasing a health insurance policy that provides top-up financial support in case your basic health insurance plans reach their limit. We have a small amount of premium you can opt for to top-up health insurance.
Here is an example:
Suppose you have a policy with a coverage limit of ₹5 lakh per year but require a higher coverage limit of ₹8 lakhs per year due to your medical needs. In such a case, you can purchase a top-up plan that covers the additional ₹3 lakhs.
Why Online Health Insurance Top-Up Is A Good Idea?
- Affordable premium
Top-tier health insurance plans have affordable premium rates as they give coverage as a supplement to the primary health insurance policy and have become the ideal choice for those who want to enhance their primary health insurance policy.
- Higher coverage
Higher coverage is obtained by adding additional coverage to existing plans. And this higher coverage ensures that you have adequate financial protection against any unforeseen medical emergency.
- No medical checkup is required.
In most online health insurance policies, you do not require any medical checkup if you are under a certain age, as it makes it easier for individuals to purchase topper plans without undergoing any other medical tests.
- Fights Inflation
Medical costs increase frequently. In the case of a top-up insurance plan, you have adequate coverage and have to find the inflation that allows you to not compromise your health due to the hefty medical bills.
- Tax benefits
Another benefit of having a top-up plan is that the premium paid on a top-up plan is eligible for a tax reduction of up to ₹25000 for individuals below 60 and up to ₹50000 for senior citizens above the age of 60. It also makes top-up plans an attractive way to reduce tax liability while enhancing your health insurance coverage.
- Customisable
Online health insurance offers customisable coverage options so the individual can choose the amount insured and the coverage required based on their specific needs, making it an attractive option to enhance your medical policy.
- Convenient
With the internet’s and technology’s benefits, purchasing insurance policies online is simple. You can buy it from the comfort of your home. And with just a few clicks, you can also renew your policy online without any hassle, which saves you a lot of time and effort.
Why Is Top-Up Health Insurance Cheaper?
It is generally cheaper than a regular health insurance policy because
- It functions as a supplementary cover that provides additional coverage above and beyond the basic health insurance policy insured.
- The top-up policy is activated only when the medical expenses cross a certain threshold, known as the deductible or the threshold limit. Hence, the insurance company has a lower risk of paying out claims, which translates into a lower premium for the policyholder.
- And they are sold directly to the customer, which saves the fees and commission of intermediaries, such as agents or brokers, which overall reduces the cost of the policy.
Conclusion
Investing in health insurance top-ups is a worthy decision. To enhance your medical insurance policy and leverage multiple benefits as mentioned above. The rising cost of healthcare policies will help you ensure that you have financial support in your pocket in case a medical emergency arises. You can also add top-ups with your health insurance plans for your family to ensure you have adequate protection for the health of your loved ones. It is also recommended to buy it from reliable companies like Tata AIG or others with proper research. And review all the policy terms and conditions beforehand to leverage maximum benefits.
