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Benefits of Top-Up Health Plan

Karan Sharma Karan Sharma 30 January 2020

What are the advantages of a Top-up plan? Read this article and find out.

Benefits of Health Plans

The rising inflation and cost of quality medical treatment have prompted many to consider including top-up health plans to their portfolio. A top-up health insurance plan broadens the cover of your existing policy’s threshold limit at a nominal cost. A top-up health cover is applicable on both independent mediclaim policies and corporate group policies.

How do Top-Up Plans Work?

A top-up health insurance plan is applicable in situations where the insurer has to bear the treatment cost that exceeds the deductible limit of assured limit. The deductible feature makes it cheaper as it brings down the liability of the insurance provider. When the policyholder exhausts the cover limit of their existing policy, the top-up plan comes into the picture and helps in providing cover for expenses that cross the threshold limit. In the absence of a top-up cover, the additional medical expenses beyond the cover limit are borne by the policyholder.

Benefits of Top-up Plans

  • Top-up plans are less expensive in comparison to general health insurance policies if the deductible is higher.
  • Top-up policies come at a nominal cost.
  • Top-up plans are easy to purchase and can be availed from any insurer without any restrictions.
  • The base health insurance plan and the top-up plan can be from different insurers.
  • Top-up plans are available in single and family floater options.
  • Top-up plans offer tax deductions under Section 80D of the Income Tax Act, 1961.

It is advisable to purchase a base policy and a top-up over and above that policy. This will enable you to use your base health insurance policy to make a claim up till the deductible amount and then use your top-up plan for expenses over that.

Recommended Link: What are the Additional Benefits of Super Top Up Health Insurance?

Karan Sharma
Written by Karan Sharma
Content Strategist at Coverfox.