No one can predict the future. Not a single person knows what would happen next. The future is totally unpredictable for everyone, so it is always advisable to prepare yourself for the physical, financial or emotional bumps. That’s when health insurance covers play a significant role. But it is generally seen that no health cover is ever sufficient in dealing with the health needs. Instead of purchasing a new health policy every time, it is better to choose top up health insurance plan. This would aid in broadening your cover and extending your threshold at a very nominal cost.
What is Top Up Health Insurance?
Top-up plans are the services that act as an addition to your main health insurance. They include additional medical expenses an insured person has to suffer. Top-up plans have the significance of shielding the buyer from additional expenses.
Tips to make the most of health policy Super top up plans
Ponder upon the cost thoroughly
It is known from a research that a company allows employees to buy super top-up covers between Rs 2 lakhs and Rs 5 lakhs. The annual premium for employer facilitated covers is around Rs 1,000 per Rs 1 lakh coverage. You can always buy a super top-up health insurance plan independent of a base plan in case your employer does not allow you to buy a super top-up cover. It is better to invest in a super top-up plan rather than family-floaters because super top-ups are cheaper. Rs 5 lakh family floater covering self, spouse and one child will cost somewhere between Rs 10,000 and Rs 17,000 a year. A Rs 5 lakh individual health plan will cost a 35-year-old Rs 4,000-7,000 annually.
You need to choose carefully
A policy with a Rs 3 lakh deductible will cover the difference of Rs 2 lakh, if your hospitalization bill is Rs 5 lakh. But, if, you are hospitalized twice in a year, and both the bills count upto Rs 2 lakh each, then your normal top-up plan will not be an appropriate choice. A basic top-up policy will apply the threshold deductible to every hospitalization. Even if the total bill overshoots the Rs 3-lakh limit, each instance of hospitalization is well within the deductible limit. However, a super top up policy puts together all hospitalization claims to calculate the deductible limit. So, in the above example, since the total hospitalization expense, Rs 4 lakh, crosses the deductible limit of Rs 3 lakh, the super top-up plan will pay Rs 1 lakh. Therefore, it's best to buy a super top-up plan.
Understand the deductible
For understanding how your top-up plans work, you need to first decode the deductible component of a health insurance top-up plan. Let us explain this with an example. For instance, you choose a Rs. 5 lakh top-up plan that offers a deductible amount of Rs. 2 lakhs, your Insurance provider will pay Rs. 3 lakhs as a maximum claim amount. While, when your employer offers a health cover of Rs. 2 lakhs and you want to get a cover of Rs. 10 lakhs, you would need to opt for a high-deductible top-up plan that gives you Rs. 10 lakh cover and a deductible amount of Rs. 2 lakhs.
Claim Income tax benefits (IT benefits)
Top-up and super top-up plans are eligible for tax deductions under section 80D of income tax deduction. So, it is advisable to not miss out on income tax benefits on payments of premiums for top-up insurance plans. Total deduction of Rs 25,000 can be claimed if you are paying for a top-up plan that ensures security of yourself, your spouse and children. And in case of security of your senior dependent parents you get to claim up to Rs. 30,000 in deductions.
Well, you need to study every minute detail very carefully before opting for any health insurance top up plan. By choosing them carefully, you can save large on medical bills and avoid sudden medical emergencies. Think about it thoroughly and consider all these tips to make the most of health policy top up plans seriously to secure your health today.