Health Insurance – Top-Up Covers

Top-up covers are, to put it simply, additional health insurance covers that manage medical expenses that review your main policy cover. alliance insurance abu dhabi

Just how do Top-up Covers Function?

Top-up covers work on the deductible sum covered by insurance concept. Deductible amount means the amount that you have to pay first to be able to trigger the top-up cover. You can pay this deductible amount from your existing / base health insurance policy, or away of your own pocket or purse. 

Here’s an example to make clear this better:

You have a health insurance cover with sum covered with insurance X lakh.

We have a state in the policy for X+3 lakh.

The camp coverage provides cover up to X lakh and the sum insured gets worn out.

The remaining 3 lakh of claim amount should be paid.

The top-up cover covers this surplus amount and the complete lay claim of X+3 lakh can be taken proper health care of without you paying just one penny out of your own pocket.

These types of are some reasons to get top-up cover:

Increase in hospitalization expenses
Increase in the frequency for serious hospitalizations
Additional cover over and above the existing cover
Reasonable premiums as compared to the protected sum insured
Waiting times and exclusions are as per the base insurance plan
Problem would arise in your mind about the requirement of having a bottom policy to acquire a top-up cover? Though the foundation policy is a necessity, you could buy a standalone top-up cover where you do not have any base policy. In this case, as advised earlier, the deductible amount will have to be paid from your bank and all the conventional waiting around periods and exclusions would apply for this as it would for a regular policy.

Standard waiting around periods:

First 30 times waiting period.
Waiting durations for pre-existing diseases and joint replacement surgeries.
Regular exclusion:

Pregnancy and child birth
HIV, AIDS
Clear plastic or cosmetic surgery
Exterior equipment or aid
Oral treatment
Hospitalization for analysis purpose only
The exclusive lists of each and every can be read in the plan wordings.

It must be ascertained that when you purchase a top-up cover the tax deductible amount should match your base policy sum covered with insurance otherwise the difference would have to be in the mind by you

Why decide for a Top-up Cover?

The best reason for buying a top-up cover is that your health insurance policy might not exactly always be sufficient in regards to large medical expenses. Let all of us take the example of Aditi:

Aditi is a young corporate professional. The girl has health insurance for Rs. 3 lakh. Some day, she is diagnosed with a serious illness and is hospitalized for treatment. Within 5 months, her medical health insurance policy has recently been exhausted due to the treatment being extremely expensive. Fortunately for Aditi, she acquired taken a top-up cover of Rs. 10 lakh, with a deductible of Rs. 3 lakh. And so her medical bills remain paid without the trouble.

Top-up covers are also useful if you are a senior citizen, or getting close to that age. As you grow old, getting an increase is the sum covered with insurance of your base coverage will be difficult and expensive. The premium rates will be very high and there will be numerous lab tests to undergo as well. In this instance, having a top-up cover helps you00 stick with your base policy, while letting the top-up cover manage any extra expenditures that arise. To demonstrate this better, we will see the example of Narayan and Irshad.

Irshad and Narayan joined the same company together when they were twenty-five years old and have been working there for 27 years. These years, their employer was providing health insurance for them, for Rs. 3 lakh each. Now, at the age of fladskærm, they need to change jobs and go on to another company. However, this business does not provide health insurance due to its employees, and they both have to buy their own individual health policies. That they both realise that as seniors with greater health risks, a Rs. 3 lakh policy is no longer sufficient, so must go for a higher sum insured.

Narayan acquired remained at ease with the health insurance provided by the company. Now, when this individual visits buy an specific policy, he finds away that there are numerous lab tests for him to take, which when he finally takes insurance for Rs. 10 lakh, the premium is extremely high.

Irshad, however, acquired taken the precaution of buying a top-up cover for Rs. 15 lakh, to go with his employee health insurance india. Now, he does not need to buy a policy with a higher sum insured. He simply takes a Rs. 3 lakh policy. He views that though a Rs. 3 lakh cover exclusively is not sufficient, his top-up cover will manage any extra expenses.

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