Why do you have a spare tyre or a Stepney in your car? So you can use this spare tyre as a backup if one of the other tyres becomes punctured.
Similarly, when your medical insurance policy's total insured amount is reached, a top-up health insurance plan works as a Stepney.
A typical health insurance policy only covers hospital expenditures up to the amount of the sum insured, whereas a top-up plan covers you after your current policy exceeds a particular level.
Simply put, the insurance company will pay up to the total insured amount if you are hospitalized. A top-up plan, on the other hand, will only activate if your sum assured limit has been exceeded. For example, if your limit was Rs. 5 lakh, the top-up plan would cover the remaining amount.
What Does a Top-Up Plan Offer?
Rider benefits such as hospital cash, personal accident coverage, and critical sickness coverage are sometimes confused with top-up health insurance. Top-up health insurance covers nearly all hospitalization costs, whereas riders only cover a few catastrophic ailments. A rider plan is only available with a base plan; however, a top-up plan can be purchased independently of the base plan.
Top-up health insurance, in reality, is an indemnity plan that provides the same advantages as a traditional reimbursement medical plan.
The only difference between these plans is the cost of deductibles, which makes them inexpensive. The underwriting may change to some amount because the basic mediclaim coverage minimizes the risk for the insurance provider.
Furthermore, most top-up plans do not require medical screening until you reach the age of 55. It is necessary forstandard health insurance plans after 45 years.
If the current plan has reached the limit, you can file a claim for both an individual plan and a top-up plan. Both can be obtained from various insurance companies, which will be responsible for paying a portion of their claims.
If you already have a mediclaim plan with one insurer, you can purchase a top-up plan from the same insurer or from a different insurer.
Conclusion
Top-up health insurance plans, without a doubt, will assist you in bridging the gap between actual medical expenses and your existing coverage. A top-up health plan is also a viable alternative for persons who already have an individual policy or employer-provided medical care.
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