We hear everyone say save money for a rainy day. Most of us do. We have our umbrellas in place. But, what if rains don’t stop? Or, it keeps raining for days or weeks? Our umbrellas won’t be enough. We would need a raincoat and a solid roof over our head.

What is your solid roof in case of a health emergency? Some of you may have bought a health insurance policy. But, would that be enough if you stay hospitalised for more than four-five days or face multiple hospitalisation in a year? It won’t be. Your base health insurance policy is just an umbrella. Your need a raincoat and a solid roof of a super top-up plan.

What is a super top-up plan?

A super top-up plan is a cost-effective way to boost your health insurance coverage. It compliments your base health insurance policy and gets activated after you exhaust the sum insured in base policy. For example, if you have a health plan of Rs 5 lakh coverage and a super top-up plan of Rs 10 lakh coverage, total coverage available to you is Rs 15 lakh. First your base plan will get used up, and if need be, the Rs 10 lakh super top-up.

One may buy a standalone super top-up plan (and no base policy), but it is not advisable. We will explain it soon in the article.

Super top-up versus higher base sum insured

Taking ahead the above example, you may wonder why not take a base policy of Rs 15 lakh, instead? Here comes the affordability factor. A combination of Rs 5 lakh base and Rs 10 lakh super top-up will be much cheaper than a pure base policy of Rs 15 lakh. Take, for example, a family floater (2 adults and 2 children) insurance with a base cover of Rs 25 lakh will cost you around Rs 29,000 per annum compared to a combination of Rs 5 lakh base policy and Rs 25 lakh super top-up (with a deductible of Rs 5 lakh) at nearly Rs 21,000 per annum premium.  What is deductible, you ask? Read on.

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Why super top-up plans are cheaper?

If something comes cheap, you must ask, ‘why?’ Super top-up plans are cheap because these policies comes with a deductible, that is, it comes to your rescue only after you have taken care of certain medical expenses by yourself (up to the deductible amount). This could either be through your base policy, group health insurance from your employer or simply paying the amount from your pockets. Need more clarity? Let’s take an example.

All super top-up plans have a deductible amount. So, if you buy a Rs 20 lakh super top-up plan, the deductible amount could be Rs 5 lakh. This is how deductible in super top-up plan works:

Scenario one: If your approved claim amount comes in at Rs 4 lakh, nothing from Rs 20 lakh will be paid to you. Pay Rs 4 lakh either by yourself or from a base policy.

Scenario two: You get hospitalised again in the same year. The approved amount this time is of Rs 3 lakh. In this case, super-top plan will get activated but only for Rs 2 lakh. Rs 1 lakh will have to be paid by you.

Scenario three: You are again in the hospital in the same policy year. The approved claims amount to Rs 8 lakh. The full amount will be taken care of by the super top-up plan.

Thus, one has to pay the deductible amount only once in a year, and super top-up plan takes care of your medical bills from then on. Super top-up plans are different from top-up plans in which deductible is to be paid every time you get hospitalised before top-up policy cover comes into picture. Top-up plans are largely in extinction now as super top-up plans are clearly much more beneficial.

Who should buy a super top-up plan?

Super top-up plans are available for individuals and for a family plan too. Even if you keep a lower deductible amount, you can still boost your coverage significantly. These become absolutely necessary in case of a family floater policy, especially in covid times, when chances of more than one family members getting hospitalised in a year are quite high. Remember only once you have to take care of the deductible amount. Rest of claims in a single policy year will be covered under super-up plans.

Pick up your phone and connect with us for more clarity. We are available at 8178271045.