Rakesh Arora, aged 30, has a Rs. 5 lakh health cover in place for himself and his wife. However, rising healthcare costs made Arora realize that a serious illness or accident may require expensive treatment and exhaust his health cover. What is also adding to his anxiety is the fact that as he grows older, health insurance will only become more costly. While he was considering buying an additional health insurance policy, a friend suggested him to go for either a top up or a super top up health insurance plan.
The reason being these plans offer a more economical and a better solution for people who are already covered under the group health plan of their employer or hold an individually purchased health policy, but want to increase their insurance coverage. Let’s understand how.
The base health policyWe all know that a health insurance policy is primarily meant to cover expenses pertaining to unforeseen health risks. The premium is dependent upon three major factors – number of members to be covered, age and sum insured. Higher the age or the sum insured, higher would be the premium. Normally, such a policy is bought individually or the coverage comes through the corporate.
Upgrade your sum assuredBut what if after buying the health insurance policy, you realize that you are not adequately insured and you need a bigger sum assured to ensure that your family is financially well protected against health emergencies. You can either opt for another insurance policy, which is usually an expensive option or you can go for the top-up or super top-up plans.
“Top up” and “Super top up” are plans designed to provide an additional health insurance cover, over and above your existing health plan. These plans play the role of upgrading the sum assured of the base plan, providing you extra cover to meet rising medical costs during inflation.