Top-up vs Super top-up health insurance plan: What is the difference? Are they necessary to purchase?

With the cost of medical treatments rising, health insurance seems an optimal way to care for your loved ones. There are several health insurance plans available these days that can provide adequate coverage in the event of any serious illnesses and hospitalisation. Policyholders can also get a boost to their scheme via a top-up or super top-up health insurance plan. Let’s take a detailed look at the concept and if these options are necessary to purchase.

Top-up health insurance plan: What is it?

A top-up insurance plan provides financial coverage after the policyholder has utilised the maximum claim amount possible. Once the insured amount is over, the top-up plan is activated to function as an additional layer of financial protection.

What is a super top-up insurance plan?

When the total medical expenses incurred during a policy year exceed the amount insured, a super top-up plan can provide additional coverage.

Top-up vs Super top-up health insurance plan: What is the difference?

Basis of expenses: A top-up health insurance plan is based on one single claim while the super top-up plan will be applicable on the aggregate medical expenses in a policy year.

Deductible: A deductible is the amount a policyholder must pay before the top-up/super top-up insurance kicks in. In top-up plans, the deductible is valid on each and every claim. On the other hand, deductible is applicable once a policy year.

Expenses: A top-up plan is cheaper than a super top-up scheme.

Is it necessary to buy a top-up or super top-up health insurance plan?

It is not necessary to buy these schemes. However, availing a top-up or super top-up health insurance plan has several advantages.

Shield against rising healthcare costs: The plans can act as another layer of financial protection against rising healthcare expenses. They can give you the option of more money for treatment in case the sum insured gets exhausted.

Higher coverage for senior citizens: These schemes can provide higher coverage for senior citizens at lower premiums.

Additional benefit to existing insurance: A top-up or super top-up plan provides additional benefits for any medical emergency to a person’s existing health insurance.

Tax benefits: Top-up and super top-up health insurance plans can provide tax deductions under Section 80D of the Income Tax Act, 1961.

When it comes to health insurance, investment is the key. There is no harm in opting for a top-up or super top-up plan to ensure that any medical expenses are covered.