Saturday, 16 November 2019

5 Best Super Top-up Health Insurance Policies in India for 2020

Posted by MyInvestmentsPub
Now-a-days the prices of the Medical treatments are sky rocketing and it is very difficult to bear the Medical expenses with out a Medical Insurance. Still many of us are not aware about Health Insurance policy and its importance. Hence, major stake of their hard earnings are being consumed during medical emergencies. Because of the current life style, immunity power is getting decreased and new diseases are attacking. Pollution and de-foresting is also adding fuel to it. Hence, we need to spend thousands of rupees for small diseases also. If you take 3 Lakh policy for your entire family the average premium would come around Rs. 10,000 to Rs. 15,000 per annum. But if you take 5 Lakh policy, the premium would come around Rs. 15,000 to Rs. 25,000 per annum. And, every year the premium prices are increasing. So, everyone thinks about to get higher Medical Insurance at affordable prices. Is there any solution for this? To address this, the Health Insurance companies come up with Super Top-up plans. We will see more details about Super Top-up plans in this post.



What is Top up Health Insurance Plan?

Before going to details about Super Top up Health Insurance plans, we need to understand Top up Health Insurance plans. Top-up health plan is an extension to your Primary health Insurance policy and will come into effective after the exhaustion of the sum insured limit of your Primary Health Insurance Policy. A regular policy reimburses hospital bills up to the sum insured while a top-up plan covers costs after a certain threshold is reached.

What are Super Top up Health Insurance Plans?

Super Top Up Health Insurance Plan works exactly like Top Up Health Insurance but with only one difference. In Top Up Health Insurance Plan, there is a limit for a claim in a year i.e. single claim in a year. However, in case of Super Top Up Health Insurance Plan, there is no such limit.

See the small example to understand better about Super Top up Health Insurance plans: 

Assume that Mr. Ram is a private employee and has a regular Health Insurance plan for Rs 5 Lakhs and having a Super Top up Health Plan for Rs 5 Lakhs. On one unfortunate day, he met with an accident and has undergone an emergency Medical Treatment and the expenses were Rs. 7 Lakhs.
Regular Health Insurance plan covered 5 Lakhs, and the remaining 2 Lakhs were covered by by his Super Top up Health Plan. On the same year, one more unfortunate incident happen in his family. His spouse has hospitalized due to some illness and the expenses mounted to Rs. 3 Lakhs. In this scenario, his Super Top-up plan covered 3 Lakhs. Hence, there was no major dent to his pocket.

In a nutshell, the Top up Health plans work on ‘per claim’ or ‘per single hospitalization’ basis, they are beneficial as long as the single claim amount is above the threshold limit.

The Super Top up Health Plans work on  ‘multiple’ hospitalizations and they look at the aggregate claim. This means that they put together all of your claims of hospitalization to calculate the deductible limit (threshold limit) and settle accordingly.

Differences Between Top up Health Plans and Super Top up Health Plans:

Assume that you have a Basic health insurance policy of Rs. 2 lacs and Top-up/ Super top-up plan of Rs. 10 lacs, with a threshold of Rs. 5 lacs.


(Courtesy to coverfox)

Features of Super Top up Health Plans:

1. Cheaper than Regular Health Plan: 

The deductible or threshold limit makes Super Top up plans cheaper when compared to regular plans. Higher the deductible (threshold limit), lower the premiums of Super Top up plans. Generally, Top up plans are cheaper than Super Top up plans but when we consider the benefits of Super Top up Health plans over Top up Health Plans, the difference in the premiums can be justifiable.

2. No need of Buying Regular Health Insurance Plan:

It is not mandatory to have an existing regular or group mediclaim to buy a Super top up Health plan. However, the combination of Regular Health Insurance plan + Super Top up Health Plan would give you the maximum health benefits in all scenarios. If you have regular health insurance, then below the threshold amount will be settled by the regular plans and above threshold claim amount by Super Top up Health Plan.

3. Tax Benefit:

Exactly like regular health insurance products, you can claim the tax deduction under Sec.80D of IT Act for the premiums paid against Super Top up Health Plans.

4. No NCB (No Claim Bonus)

Super Top up Plans generally do not offer NCB, however, if you have accumulated no claim bonus (for claim free years), Super top up plans will pay the claim amounts over and above the regular plan’s sum assured + No claim bonus amount.

5. Work On Reimbursement Basis:

Another important point is that most of the Super Top plans work on reimbursement basis. They will pay the claim amount after the insurer gets the details of all the medical bills, to assess whether the policyholder has paid the deductible limit by himself or through any existing health insurance policy. They will not bother whether below threshold amount is from the policyholder’s own pocket or from his regular health insurance. Then only any dues of above threshold limit settled by Super Top up plans. Hence, getting cashless benefit from the Super Top up plans is difficult.

6. Both Individual and Family Floater Plans Available:

Similar to the Regular Health Insurance plans, these Super Top up Health Plans are also come up with Individual and Family Floater Plans. Some companies even offer Super Top up plans for senior citizens as well. Example : United India Super Top up Plan.

7. Guaranteed Renewal for Life: 

Most of the Insurers allow you to renew your Policy throughout your lifetime, provided your application for renewal and the renewal premium are received in full before the due date or within a maximum of 30 days from such date.

8. No medical tests up to the age of 55:

Because of the Threshold limit, many insurers offer the product with out any medical check up up to the age of 55.

Who Can Buy Super Top up Health Plans:

  • The Super Top Up policy is ideal for people working with corporate sector who already have group health policy cover.
  • Any Individuals who covered with Insufficient health coverage by the Regular Health Insurance Policy and looking higher coverage with lower premiums.
  • If the claim history of you and your family from the last 3 - 5 years is above the coverage of Regular Health Insurance Policy.
  • Family having more number of claims in a year which is above the Primary Health Insurance Plan

5 Best Super Top up Health Plans in India for 2020:

 Things to Remember Before Purchasing Super Top up Plan:


  1. Read thoroughly about the Policy Terms and Conditions. 
  2. Check for duration for Pre-existing diseases and scope of cover.
  3. Check if any day-care procedure is available
  4. Check for Pre & Post hospitalization expenses are covering
  5. Check for premiums after 60 years
  6. Check for service history of the Insurer.

Conclusion:

Because of the rising of the cost of Medical emergency needs, your basic health insurance plan cannot be sufficient and need an appropriate top up plan that complements your existing Medical Insurance policy. So, nowadays it is always advisable to have a Top up plan / Super top up plan along with your Basic Health Insurance policy. Take a resolution on the coming new year to have a Top up plan / Super top up plan.


Wishing You and Your Family a Happy & Healthy New Year 2020!

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