Benefits of Top-Up Plans for Medical Emergencies
Top-up plans provides an extra safety net that you can return to assuming you exceed the limits of general medical coverage plan.
The pandemic has given a lesson that no one will be ever prepared enough for unprecedented medical emergencies. Disease can strike unexpectedly, and keeping in mind that you can never foresee the degree of its harm, you can at least make a financial safety net around you to help you out in emergencies. By this, you can prevent uncertainties and emergencies from draining the financial resources.
Comprehensive health insurance plan coverage will guarantee that we don’t need to resort on our savings to meet medical expenses. Absence of awareness on health insurance is one reason for the low penetration of health insurance in India. A majority of working population in India depend on the employer’s group health insurance coverage.
While it is great to have some health insurance plan, it might demonstrate deficient to cover you or your family, particularly when one is still living in the shadow of a public health emergency. Additionally, the employer’s health insurance plan may not be sufficient to cover all the medical exigences. You would be best served by getting a top-up plan which gives you coverage far beyond the employment insurance.
A top-up plan increases the current coverage level at an affordable premium. Top-up plans offer an additional safety net which can fall back on when you exceed the limits of your normal health insurance plan.
Types of top-up plans
There are types of top-ups
- Top-up plan
This Top-up plan offers you an add-on coverage over the sum insured of your existing basic health policy only upto a certain limit. This plan will get activated when you have used your threshold limit under a single claim.
- Super Top-up plan
The super top-up plan offers you more benefits and provides a higher sum insured when compared to the basic top-up plans. It offers over-the-top insurance coverage once you exceed the threshold amount in a year on an aggregate basis.
An prominent difference between the two plans is that the basic top-up plan just considers the threshold limit on each individual claim but the Super top-up plan evaluates the threshold limit on yearly basis when the policy is in force. The basic top-up plan covers claims only when a single claim goes above the threshold guarantees just when a solitary case goes over the edge of the safeguarded sum though the very top-up offers insurance when the complete cases surpass as far as possible during the strategy time frame. The two plans have their own advantages and the reasonableness relies upon a singular’s circumstance.
A prominent difference between the two plans is that the basic top-up plan only considers the threshold limit on every individual claim whereas the super top-up plan evaluates the threshold limit on yearly basis while the policy is in force.
It means that the basic top-up plan covers the claims only when a single claim is done above the threshold of the insured amount whereas the super top-up provides protection when the all the claims exceed the threshold limit during the policy period. Thee both top-up plans have their own benefits and their suitability depends on an individual’s situation.
Advantages of top-up plans
- Inflationary circumstances, like the ones prevailing currently, may lead to increase in hospitalization and medical expenses. In such condition, your health plan coverage may prove inadequate to cover you and your family’s medical expenses. It is reasonable to invest in a top-up plan to prevent an illness debilitating your own investment funds.
- Investing in a top-up plan increases your health policy coverage at an affordable premium. When compared to basic health insurance plans, top-up plans are more affordable and best with higher limits.
- Many top-up plans can easily and seamlessly be converted into basic health insurance plans. And these plans can be renewed lifelong. making golden age more worry-free.