Top-up Plan vs Super Top-up Plan: What is the difference and which one should you buy?

People are now aware of the benefits of health insurance and how it can be a saviour in case of unexpected medical expenses, owing to a global pandemic and rising healthcare costs. As health insurance has multiple options like different premiums for the sum insured, it is essential to opt for the right insurance cover that suits you and your lifestyle. However, we have learned from the pandemic that the unexpected is an area of concern, and with increasing inflation, medical expenses can be higher than the sum assured. In a country like India, where most people have floater health insurance policies or corporate covers that have a limited Sum Insured, a top-up health insurance plan can be helpful. 

There are two options available currently: A regular top-up plan versus a super top-up plan that some new age insurers like Digit Insurance offers. 

A Top-up plan and Super Top-Up plan are both like an extension of a health insurance you can use when you’ve already used the maximum claim amount (during the year) in your corporate insurance or, are largely okay to pay some amount from your pocket, but need a health insurer to cover for you when things get pricier. 

See Zee Business Live TV streaming below:

However, the major difference is that a super top-up plan covers claims for cumulative medical expenses within a policy year once you’ve exceeded the deductible versus a regular top-up that only covers claims when a single claim goes above the deductible! What is more is that you need to pay the deductible only once in a super top-up plan in case you claim multiple times in the same year. Unlike in a top up plan, where every time you claim in a year you need to pay the deductible. 

Let’s understand this better with an example  

Suppose you and your friend took a top-up and a super top up plan respectively with a Sum Insured of 10 lakhs and a deductible of 2 lakhs. Both of you had to claim thrice in a year for medical emergencies. Here’s what you get and what you pay. 

Why you should take a Super Top- Up Plan vs a Top Up Plan  

Increasing medical costs: According to Money Control, healthcare costs in India rise at double the inflation rate! This simply means you need a higher sum insured. With a regular top-up you also need to shell out the deductible every time you claim, which is where a Super Top-Up plan helps.  

Greater coverage for seniors & parents: Since healthcare costs for seniors are higher, health insurance premiums too are usually very high. However, a super top-up plan can help you get extensive coverage for your parents, at a much lower cost. Also, with the fact that there are seniors are more prone to a hospitalization more than once in a year, taking a super top up instead of a top up plan is better. 

Greater cost savings: A super top-up health insurance policy is a cost-effective option to ensure you’re covered for life’s uncertainties and also helps in saving more on your deductible than a regular top up plan. 

Both top-ups and super top-ups are helpful if your medical expenses exceed the base amount covered by your insurance policy. Top-up plans enhance your existing health insurance policy with a better cover, and you can manage out-of-pocket expenses reasonably. However, a super top-up plan can provide additional benefits. 

(By Dr Sudha Reddy, Head, Health and Travel at Digit Insurance)