Do you need a super top-up health insurance policy?

Indraneel Chatterjee, co-founder, RenewBuy, said, “If one’s health insurance is not sufficient to cover the escalating medical costs, a super top-up health plan is an economical way to ensure that he or she gets covered. Once the deductible is met, a super top-up plan pays the complete cost of hospitalization charges.”

In other words, the super top-up plan becomes active for subsequent claims when the total admissible claims exceed the deductible level. Deductible is a set amount that you have to pay towards meeting your medical expenses before your health policy kicks in or begins to pay for medical-related services.

How it works: A super top-up plan is a type of health insurance cover that provides the insured with compensation for cumulative medical expenses within a policy term when it exceeds the deductible. Also, it doesn’t matter whether the regular health policy or the patients themselves have paid for medical expenses up to the deductible.

Sanjiv Bajaj, joint chairman managing director, Bajaj Capital, said that adding a super top-up to an existing cover lowers the cost of insurance, yet provides high coverage.

“For instance, if the deductible opted by the policyholder is ₹4 lakh the medical bill is ₹10 lakh, then the super top-up pays ₹6 lakh to the hospital (subject to the maximum sum insured limit) rest is either paid by his existing health policy or met by the insured from his/her pocket,” said Bajaj.

Difference between super top-up regular health policy: Both super top-up health insurance plans regular health insurance policy offer much-needed financial protection in case of a medical emergency. The difference lies in how claims get settled (refer to table).

Benefits of a super top-up plan: Like a regular health policy, a super top-up plan also covers the insured for hospitalization required due to covid-19. Apart from this, a super top-up policy covers you for critical illnesses as well.

Rakesh Goyal, director, Probus Insurance, said, “The super top-up plan covers all hospitalization bills above the deductible limit, unlike basic top-up plans that cover only single claims above deductible limit.”

Besides, when buying a super top-up plan, the policy buyer gets the flexibility to choose the deductible option according to their sum insured. Moreover, they can also rejig the sum insured according to their requirement during renewal. In addition, the premium paid towards the super top-up health plan, too, qualifies for availing tax benefits under Section 80D of the Income Tax Act.

When should you opt for super top-up insurance: Ankit Agrawal, chief executive officer co-founder, InsuranceDekho.com, suggests that people should buy a super top-up plan if they are senior citizens or parents, since it offers greater coverage at an affordable premium. If they are dissatisfied with the coverage of their existing health insurance policy, then a super top-up plan is a good option. Besides, if they want to upgrade their health insurance plan provided by their employer they can go for a super top-up plan.

“Considering the rising medical expenses, having just a corporate insurance policy is not adequate. With a super top-up policy, the insured can avail cover that he/she might not get under a corporate health insurance policy. For instance, AYUSH treatment, critical illnesses, etc,” said Agrawal.

Mint takeaway: Different health insurance companies offer different features benefits with their health insurance policies, be it a super top-up plan or a regular health insurance policy. But both of them provide financial backup in case of a health emergency.

“When choosing between them, it is suggested that you use a health insurance premium calculator to compare analyze their premiums in comparison with the benefits they offer. Also, thoroughly read the policy document before after policy purchase. Only then will you be able to make the right choice of plan for yourself your family members,” said Agrawal.