Insurance
•02 min read
Welcome to our brand-new series, A-Z of Insurance. In this series, we will venture into the world of insurance to breakdown insurance jargon for you, so you’re empowered to make informed decisions about your financial security.
India is currently witnessing a sky-high medical inflation rate of 14% [Source: Mint]. In such times, health insurance acts as a source of solace, giving you easy access to quality healthcare, so you can focus on your health, without having to worry about funds.
While traditional health insurance is a solid financial backup, it may not be enough to cover all your medical expenses. For instance, if you’re covered by your office health plan and the coverage is too low for your needs, you’ll be left to bear the brunt of out-of-pocket expenses.
According to a report, the average health insurance coverage provided by Indian employers is ₹3 lakh [Source: Business Standard], which is quite less when you look at rising healthcare costs. For example, the cost of cancer treatment can range anywhere from ₹1 lakh to ₹27 lakh in major cities [Source: Practo].
This is where a super top-up plan is of immense help. It acts as an additional financial safety net, keeping you safe from long hospital bills and providing a steady backup during medical emergencies.
Let’s see what a super top-up is and how it works.
Let’s imagine Aryan gets hospitalised for an illness a few months after his kidney surgery. This costs him ₹50,000. Now, even though his office cover is used up, his super top-up will cover the bills, since the deductible limit was crossed during the first hospitalisation.
Here are a few reasons why you should get a super top-up:
Extra protection
Feel your current health cover, whether personal or office, is too low? A super top-up is a great way to widen your coverage, so you can remain stress-free about big healthcare bills.
One-time deductible
A super top-up begins covering your medical bills once the deductible limit is crossed, but this applies to only the first claim you make during the policy period. All other claims are settled directly, without requiring the deductible to be paid by you. Plus, you can choose the deductible while buying the super top-up and this can be the same as your base health cover, so you don’t need to bear any expenses yourself.
Low premium
Typically, a super top-up will have a lower premium than regular health insurance plans. It’s an affordable way to boost your coverage, when compared to upgrading the same.
Typically, a super top-up policy covers many kinds of expenses, like:
Hospital stays
Room/ICU rent
Pre-hospitalisation costs
Post-hospitalisation costs
Ambulance charges
Daycare treatments
Organ donor costs
Modern treatments
And more.
Note: The exact coverage may vary across plans.
A super top-up is a booster for your existing health insurance policy, giving you expanded protection for medical bills that go beyond your current coverage. It kicks in once your base plan’s coverage is used up.
A super top-up plan starts covering your medical expenses once they surpass the specified deductible. A deductible is a certain amount you must pay before your insurance coverage starts.
Let’s understand this better with an example.
Aryan, 30 years old, is covered by his employer’s health insurance. It gives him a coverage of ₹5 lakh, which he considers is quite low with rising medical costs and his need for quality healthcare.
So, he decides to buy a super top-up plan with a cover amount of ₹50 lakh, which will comfortably cover his medical bills. He picks a deductible limit of ₹5 lakh, in tune with his office health cover.
Medical Bill 1
Let’s say Aryan needs kidney surgery, which will approximately cost him ₹7 lakh. His office health cover will cover the first ₹5 lakh (which will also take care of the deductible limit under his super top-up plan). Then, the super top-up will cover the remaining ₹2 lakh.
Medical Bill 2
