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Super Top Up Health Insurance – Save Money on hospital bills

Super Top Up Health Insurance

Cost of medical treatment and need of good health insurance plan, both has been increased significantly since Covid Pandemic hit the world. If you are looking for a way to cover your all the health related cost without making it a financial burden for you then, Super Top Up health insurance can be a savior for you.

 

Super top up health insurance along with your base health insurance can provide you a better coverage and cost of the same is very less compared to upgrade or sum insured enhancement in your base policy.

 

In this post we are sharing complete details about benefits of Super Top Up health insurance plans along with comparison between Top Up and Super Top Up health insurance.

 

But, first we need to understand what are Top Up and Super Top Up Health Insurance Plans, to have an idea about the working of health insurance extension or booster plans in India.

 

What are Top up & Super Top up Health Insurance

Basically, Top up or super top up health insurance are a deductible based plans.

 

Once this pre agreed deductible amount or threshold crossed, your extension plan will take care of your hospital expenses upto the sum insured opted.  

 

But these two extensions work very differently, here is how-


Top up Health Insurance

A Top up plan is based on every single hospitalization. It becomes active and starts paying only if the expenditure on one, single hospitalization crosses the deductible limit. 

 

To understand this more clearly, let’s take these instances-

 

Let’s say a person has a base health policy of Rs. 5 Lakhs without any add on cover and a top up health insurance of Rs. 15 lakh with threshold/deductible of Rs. 5 Lakh.

 

Consider these hospitalisations instances over the period of a year. 

 

Hospitalisation 1: Claim amount = 4.5 Lakhs 

This will be paid completely by the base plan of Rs. 5 Lakh.

Balance available in base plan = Rs. 50,000

 

Hospitalisation 2: Claim amount = 3 Lakhs

Of this, the base plan pays the available Rs.50,000. 

 

But, since this particular hospitalisation’s cost ( we only see a single Hospitalisation cost) is not beyond the Top up’s deductible of Rs. 5 lakhs, the remaining amount of Rs. 2.5 Lakh will need to be paid out from your pocket. 

 

Balance available in base plan = Zero

 

 

Hospitalisation 3: Claim amount Rs. 5.5 Lakhs

Of this, the first 5 Lakhs will need to be paid out of your pocket.

With that, the deductible is met and the Topup will pay the remaining Rs. 50,000. 

 

 

Here, is the summary to understand it more clearly-

Hospitalization

Instances in a policy year

Total Bill Amount

Bill paid by Insurance company

Bill paid from your own pocket

Plan Type

 

Hospitalization 1

4.5 Lakh

4.5 Lakh

Zero

Base Plan

Hospitalization 2

3 Lakh

 50,000

2.5 Lakh

Base Plan

Hospitalization 3

5.5 Lakh

 50,000

 5 Lakh

Top up plan

Total

13 lakh

5.5 Lakh

7.5 Lakh

 

 

So, you end up paying Rs. 7.5 lakh from your own pocket despite buying a top up plan along with base plan.

 

That is why, awareness about right cover and right health insurance extension or booster plan is necessary.


Super Top up Health Insurance

A Super Top up plan is based on the sum of all hospitalisation expenses incurred during the entire policy year of super top up health insurance.

 

Once the sum of hospitalization expenses crosses the deductible or threshold limit, your Super Top up starts paying. 

 

Let’s understand from the same above example that how much cost a person with super top up plan would have to bear. 

 

Let’s say a person has a base health policy of Rs. 5 Lakhs without any add on cover and a Super top up health insurance of Rs. 15 lakh with threshold/deductible of Rs. 5 Lakh.

 

Again consider these hospitalisations instances over the period of a year. 

 

Hospitalisation 1: Claim amount = 4.5 Lakhs 

This will be paid completely by the base plan of Rs. 5 Lakh.

Balance available in base plan = Rs. 50,000

 

 

Hospitalisation 2: Claim amount = 3 Lakhs

Of this, the base plan pays the available Rs.50,000. 

 

The remaining amount of  Rs. 2.5 Lakh will be paid from Super top up plan as deductible limit of Rs. 5 Lakh has been crossed (Rs. 4.5 lakh in first hospitalization + Rs. 50,000 in second Hospitalization).

 

Balance available in base plan = Zero

 

 

Hospitalisation 3: Claim amount Rs. 5.5 Lakhs

Of this, the complete amount of Rs. 5.5 Lakhs will be paid out under super top up plan.

 

Here, is the summary to understand it more clearly-

 

Hospitalization

Instances in a policy year

Total Bill Amount

Bill paid by Insurance company

Bill paid from your own pocket

Plan Type

 

Hospitalization 1

4.5 Lakh

Rs. 4.5 Lakh

Zero

Base Plan

Hospitalization 2

3 Lakh

Rs. 50,000 + Rs. 2.5 Lakh

Zero

Base Plan+ Super Top up

Hospitalization 3

5.5 Lakh

Rs. 5.5 Plan

Zero

Super Top up plan

Total

13 lakh

Rs. 13 Lakh

Zero

 

 

So, you can see that by combining base policy with super top up plan gives you more coverage against unseen hospitalization expenses.

 

Also, if you buy a correct combination of base and super top up policy, you also have an option to choose whether you want to cover your expenses under super top up plan or base plan.

 

This can be understood with following example-

Base Plan – Rs.10 lakh

 

Super Top Up Plan- Rs. 15 Lakh with deductible of Rs. 5 Lakh.

 

In above same example, once in second hospitalization event deductible of Rs. 5 lakh met, Policy holder have an option to cover his expense of Rs. 2.5 lakh out of Rs. 3 lakh under his super top up plan.

 

It means you can save your Rs. 5 lakh under base policy for future requirements and as deductible has already met, it will be a good decision to cover all your expenses under your super top up plan and save balance under your base policy.  

 

Why?

 

Because base policies has some limitation in terms of room rent and all associated charges with it but there are many insurance company who are offering super top up plan without any type of capping on room rent.

 

It clearly means that there will be very few deductions done by insurance companies while settling your claim and also you can opt any room or even a VIP room without thinking of capping applicable.

 

Which one to choose - Top Up Vs Super Top Up, And Why?

There is a comparison between top up and super top up plans to have a quick look-

 

Parameters

Top Up Plan

Super Top Up Plan

 

Works on

Deductible need to be crossed in Per claim or per hospitalization basis

Multiple claim permitted only deductible need to be crossed.

 

Lapse on Claim

Policy lapses once one claim for the cover provided.

Policy lapses only if entire cover is used( it can be in any number of hospitalization in policy period)

 

Settlement

Claim settles only if a single bill amount is over and above the Threshold/deductible.

Settles amount if total bill amount (irrespective of no of hospitalization) exceeds the deductible limit.

 

 

Clearly, in today’s scenario Top Up plans are not so good option to go for as you cannot predict whether there gonna be a single hospitalization of bigger expense or multiple hospitalization of any amount.

 

Also, there are add on covers like restoration of Policy amount available that are on a very cheap rates so, it is better to opt a restoration cover along with your base plan to protect yourself against hospital expenses.

 

Buying a super top up plan is a better and wider option as it does not matter whether you undergo a single or multiple hospitalization, it will pay as long as the deductible is paid for.

 

So, if you are having any major health issues that can generate huge hospital bills- do not think twice to go for a super top up plan – it is a must buy.

 

Also, if you are one who thinks he can easily bear 1-2 Lakh of hospital bill from his own pocket, you can also buy a super top up plan alone without any base plan.

 

Just keep in mind to go for lower threshold if you only want a super top up plan alone to protect yourself against unseen health issues.

 

Final Thoughts on super top up health insurance

Super Top Up Health Insurance is comparatively cheaper in premium prices and you can protect your self upto 1 crore by using combination of base and super top up plan by only paying a reasonable premium.

 

You can buy a super top up health insurance along with your corporate plan or any other health insurance policy to boost your coverage.

 

Also, it is not compulsory to buy both base and super top up plans from same insurance company. You can have both even from different insurance companies.

 

But having the same period of both the policy will avoid many confusions and also helps in faster settlement of your claim.

 

One can get a Super top up health insurance policy at lower premiums, with the premium amount depending on the deductible. A higher deductible results in a lower premium and vice-versa.

 

Some insurance companies are offering all benefits of health insurance cover from day one of buying a super top up health insurance except pre-existing diseases.

 

Just look for best offers along with cheaper premium to let you live a life without worrying about hospital bills.

 

 

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