What if you get maximum benefits in health insurance by paying a minimal cost? Though you may feel it is weird and just another marketing strategy to talk about some product, but it is not. Read more about it in this article.
In India, we feel the pinch when the price increases for Movie tickets, lunch or dinner at a restaurant, petrol, diesel etc. But have we thought about the health treatment cost. Let me enlighten you in regards the increase in price for health care treatment in the last few years:-
*Please Note: Rates are mentioned on the basis of standard rooms & valid to treatment taken in Mumbai.
If you look at the above figures they have increased tremendously for the past 5yrs. But what about Health Insurance sum insured, have you increased it? The answer will be “No”, when it comes to health insurance sum insured, it remains stagnant. There are approximately 40% of employed individuals who feel that, their Company Group Health Insurance is sufficient to take care of their health needs when they are hospitalized. But the fact is if you have a 3Lac cover & there is a situation where treatment cost is more than 3lac, how will you arrange for the funds?
Recently few of our customers have shared their personal experiences about ‘how it feels to be under insured when there is an emergency’. Let us look at the cases to get a better understanding:-
Consequences: Mr. Sujal Das had to pre-mature his fixed deposit which he had saved for his daughter’s education to pay for the deficit hospital bill.
Consequences: Mr. Aman Vasudev’s father had to sell his house to pay off the medical bills.
The above real-life examples will make you realize that little is not enough. When our Health Insurance experts advise customers to buy an additional health cover or enhance the current cover we usually hear- “I have a sufficient cover or I have company policy then why should I buy higher cover or new policy?”
We have only spoken about 2 cases, but there are many to highlight. In these circumstances, there would be a sudden realization that the current coverage is insufficient to take care of the expenses incurred and you have to foot the medical cost on your own. Once the hospitalization has happened you cannot buy a policy to take care of the expenses. Health Insurance covers unknown risks & not already diagnosed risks.
In such situations, a Top-up or a Super Top-up Policy is the best solution to look for.
Top-up Policy & Super Top-up Policies are designed to provide an additional cover/ comfort to aid the existing Health Insurance cover. They come into force only when the need is higher & basic policy cannot help.
It is also a good option as the cost of these policies are less than compared to a new health insurance policy.
But there are few details you need to understand before taking a Top-up or a super top-up. Let’s look at the definition, example & other details to get a better understanding.
Definition of Top-up & Super Top-up Policy:
*Deductible Limit: This is the limit that the customer has to manage with the help of his basic health insurance policy, corporate policy or his own pocket.
Let us look at the below Illustration to get a better understanding:-
Mr. Sunil Singhal has a basic health insurance cover of Rs. 3Lac. Let us assume he has taken a Top-up Policy with 10Lac Sum Insured & 3Lac Deductible and also a Super Top-up Policy with 10Lac Sum Insured & 3Lac Deductible.
Let us look at the situation when claims arise:
Situation 1: - Mr. Singhal has a claim for 2Lac.
Situation 2: - In the next month of the same policy year Mr. Singhal has filed another claim for 4Lac
Situation 3: - In the same Policy year Mr. Singhal had filed for another claim of 3Lac
Situation 4:- In the same Policy year customer filed another claim for 5Lac
From the above Illustration, it is simple & evident that to get the benefit in a Top-up Policy the Threshold/ Deductible has to be crossed/taken care in each and every claim, whereas in a Super Top-up Policy the threshold needs to be crossed only once in each policy year & the benefit will be paid.
So, what is the Conclusion?
To sum up and what our expert will recommend you to buy a ‘Super Top-up plan’ along with your base health insurance. Few are the benefits which you will enjoy:-
It is cheaper than regular Health Insurance - The premium of Super Top up is affordable. By paying an additional cost of Rs. 2500 you can get Super Top-up Cover of 10Lacs.
You can buy it from any company- There is no compulsion to buy Super Top-up from the same company where you have you basic health insurance.
When you buy a Super Top-up Policy you have the option to choose either Individual or Family Floater. So you can extend the cover for your family.
Like you basic health insurance you are also eligible to avail a Tax benefit under Section 80D when you buy Super Top-up policy
With so many features, you can get a higher cover at a nominal cost. It is advisable to enhance your cover at an earlier stage and provide a tension free environment if there is any unfortunate event in your life.
Here are the few companies offering Super Top-up Policy:-
To get expert advice on which of the above products are better please leave your contact details on http://www.medimanage.com/inquiry.aspx so that we can assist you.