Top up plans are a good option to cover a shortfall in regular health cover; they are also useful to cover medical conditions would normally not have been covered. Depending on the Deductible amount chosen, the top plan premiums tend to be cheaper than fresh health plans.
When we take health cover and find it insufficient to meet our medical expenses, then we have an option to increase the health cover. For example, if one’s impending surgery could cost 5 lakh rupees but Health Insurance
would cover only up to 3 lakh rupees, there is an obvious shortfall in cover. In such cases, one could top up or increase health cover by opting for a top-up health insurance plan
Top-up plan is an add-on plan. It covers the hospitalisation charges after it has reached a fixed threshold. This threshold limit is known as a deductible. This deductible value is usually upto 5 lakh rupees. For example, 1 lakh rupee deductible means the Insured will be covered by the Insurer for the excess amount outstanding after the first lakh expense has been incurred by the insured. Depending on the deductible amount chosen, the top plan premiums tend to be cheaper than fresh health plans.
Top up plans are a good option to cover a shortfall in regular health cover; they are also useful to cover medical conditions would normally not have been covered. With health care expenses on the rise, top-up plan is an economical health investment that helps in the long run. However, these plans may not be applicable in case of multiple hospital admission or pre- and post-hospitalization charges.
Investing in a floater Policy is another way of increasing health cover. In this type of policy, the entire family gets insured. Each family is considered as one unit; hence, one needs to pay only a single Premium for the entire family. The advantage is that any family member could benefit from it during the insured period. The disadvantage, however, is the insufficient insured amount in case all members of the family need hospital admission at the same time, as in the case of an accident.
There are some defined benefit plans like daily cash benefit during hospitalisation, or major surgical benefit, which will work well when we have enough savings or sufficient health cover. Daily cash benefit is all about providing a fixed cash amount on a daily basis for a fixed duration as mentioned in the policy. Major surgical benefit is provision of a lump sum amount for a surgery as per the terms of the health policy. The same policy is named as a Critical Illness plan where the insured is covered with a lump sum amount when they get any critical illness as mentioned in the policy.
Whenever the person wants to increase his health cover, they must ensure that their basic health expenses are already secured by either sufficient savings or a health cover that satisfies their needs.