scorecardresearchHealth comes first: The need for a super top up plan

Health comes first: The need for a super top up plan

Updated: 07 Apr 2022, 12:51 PM IST
TL;DR.
Do not rely on buying a health insurance plan alone. Escalating bills and sudden emergencies underscore the need for having a super top up plan that covers all insurance claims instead of considering each health insurance individually.
Health Insurance 

Health Insurance 

It’s hardly surprising anymore that Covid-19 has caused individuals across the globe to pay closer attention to their health. The unpredictable nature of the virus has led to a situation where people now have a backup plan for everything, especially when it comes to health and financial wellbeing. While having a personal health insurance plan is a wise financial move in this scenario, what if the sum insured is insufficient to access quality healthcare? Fortunately, one can prevent such a problem and ensure that they are adequately covered during the time of need by considering options that boost one’s current health insurance plan.

The most economical option that allows you to upgrade your existing health insurance coverage is through the super top up plan.

What is a super top up plan?

A super top up policy is a value for money plan that is specially designed to suit an individual’s and a family’s additional healthcare needs, especially, in times when medical expenses are getting beyond everyone’s reach. A super top up health plan, as the name suggests, ‘tops up’ your existing health insurance plan by upgrading your cover amount to a higher one and kicks in when your existing cover has been exhausted. All in all, a super top up health insurance plan ensures that you’re better prepared to deal with health emergencies. Also, given that the cover offered by a super top up plan is less than that of a policy that starts from the ground up, it’s cheaper. Therefore, a super top up plan is a cost-effective way to upgrade your existing health insurance cover.

Why must one buy a super top up health insurance plan?

Undoubtedly, the cost of healthcare is growing rapidly. This mandates one should look at upgrading their health insurance plan from time to time. There are multiple ways in which you can upgrade your healthcare plan. From merely increasing the cover of the existing policy to adding a new one to your portfolio, there are various ways that one can consider. However, the best option has to be opting for a super top up health insurance plan. While increasing the insurance coverage or going for a new plan can cost you heavily, a super top up plan offers an extra security blanket over your existing health insurance plan, which can save the day in cases of uncertainties, but at a comparatively lower cost.

One can take a super top up plan at the time of renewing the current health policy or buy it along with a primary health plan if you are buying a new one.

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What are some of the unique benefits a super top up plan offers?

Some of the super top up plans available in the market offer a wide range of Sum Insured ranging from Rs. 1 lakh to Rs. 30 lakhs. They also come with some great additional features. One of them is the Guaranteed Continuity Benefit. 

For example, there’s a possibility you quit your job and start on your own because of which you lose out on your corporate policy or your old plan is no longer giving you value for money. Here’s where guaranteed continuity benefits will help you. As part of this, however, you need to pre-buy a base policy for a nominal fee. You have to pay this fee for three years, but in the fourth year, the base policy gets activated. This happens at no additional cost, irrespective of your health condition and without any extra waiting period and no condition on the type of room you’re eligible to claim for.

Who should buy a super top up plan?

Lately, a lot of people with existing health insurance plans have purchased super top up plans for additional coverage.  Purchasing a super top up health insurance plan can be a wise thing to do, if.

Inadequate Corporate Cover

Most working people have corporate health insurance coverage provided by their organisations. But more often than not this corporate cover is insufficient to cover the entire family, especially given the growing costs of healthcare. A super top up plan can provide the added financial cushion in times of unforeseen medical requirements.

Personal Funds Repurposed

Often people feel they have enough savings to cope with an immediate health emergency. But sometimes the saved funds may get repurposed towards achieving other financial goals such as a child's education, purchasing a property, a wedding, etc. Or, a situation may arise where the savings are not enough to meet the big emergency costs. A base health insurance plan with super top up can keep you covered for a high sum insured limit taking the financial stress away.

In a nutshell

A super top up health insurance plan works like a regular insurance plan in covering hospitalisation costs but only after a "deductible". The deductible or the threshold limit is that part of the claimed sum which the insurer needs not cover. The policyholder pays for it before the benefits of the plan kick in. Higher the deductible, lower the premium of the policy. Such a feature makes a super top up plan highly cost-effective and you can enhance your sum insured at a lower cost. Besides, like any other health insurance plan, a super top up plan also facilitates tax deductions on the premium paid under Section 80D of the Income Tax Act.

Now that you see the various benefits of purchasing a super top up health insurance plan, so make sure to boost your present health insurance to be prepared to face any medical uncertainties. After all, “Health Hai Toh Life Hai”.

Shashank Chaphekar is the Chief Distribution & Technology Officer at ManipalCigna Health Insurance.

 

First Published: 07 Apr 2022, 12:49 PM IST