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Your Companion in Understanding Top-Up and Super Top-Up Insurance Covers

Health insurance is the need of the present times, especially in a world recovering from the aftereffects of a pandemic. Health isn’t just one of the many things in life to care about, but instead must take the top spot. Thus, buying health insurance is encouraged from an early age. With a health insurance policy by your side, any unexpected medical emergencies can be dealt without the worries of financial constraints.

But as features are chosen in a policy, the premium tends to increase. Thus, many buyers may opt for a plan that offers lower sum assured. Such policies with a smaller coverage are not of much use when a medical exigency strikes. Here’s when an additional health insurance policy in the form of top-up and super top-up covers come to the rescue.

What is a top-up health insurance?

A top-up plan is a health insurance policy that helps provide additional coverage for treatment costs. Instead of buying a fresh insurance policy each time the coverage falls short, you can opt for a top-up cover. It can often be difficult to estimate the medical inflation in future and accordingly purchase a policy with adequate sum insured. At such times too, a top-up plan comes handy as it helps to compensate for an insufficient sum insured depending on the levels of medical inflation.

A top-up policy can be purchased as a standalone policy and in combination with a base health insurance cover. However, it works best when bought in combination as it helps to enhance the existing policy’s scope. When you buy it with your already existing individual or family health insurance plan, you can overcome any limitation in the policy’s scope and enhance the sum insured for a better coverage.

Based on the features of a top-up plan, it is also known as a catastrophe policy since it comes into the picture only after a specified threshold is crossed. This threshold is the deductible of the top-up policy. If you need to enhance you existing health coverage, a top-up policy is a viable alternative to buying a fresh health insurance all over again. Further, a top up plan does not include the contribution clause that requires insurance companies to contribute for the claim in proportion to their share. Hence, even if you buy your base policy from a different insurance company and the top-up plan from a different insurer, both insurers will compensate in full. * Standard T&C Apply

What is a super top-up cover?

A super top-up plan is an extension of the top-up cover wherein the top-up cover is valid for a single claim, the super top up health insurance is available for multiple claims in aggregate. This super top-up plan lapses only in the event of exhaustion of the sum insured as opposed to a top-up policy that lapses after a single claim even if the entire sum assured isn’t used. * Standard T&C Apply

Have a look at an example to simplify the differences:

Mr Kabir purchases a health insurance policy of ₹10 lakhs 8 years ago. At present, there is a need to increase this coverage considering his present health condition.

If he opts for a top-up cover of ₹18 lakhs with a deductible of ₹10 lakhs, one instance of hospitalisation that exceed the base sum insured is covered by the insurance company. Any other claim shall be required to be borne from his own pocket. Consequently, in the case of a super top-up plan, multiple claims that aggregate to the additional tune of ₹8 lakhs above the base sum insured are taken care by the insurer. The super top-up policy lapses only after the sum insured is exhausted. Thus, provides an edge over the top-up plan. * Standard T&C Apply

Please note that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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