All You Need to Know About Top-Up Health Insurance Plans

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Individuals cannot be prepared for extraordinary medical emergencies, as evidenced by the current Covid-19 outbreak and the global health crisis it has generated. The only way to have a safety net and avoid spending all of your hard-earned money on treatments is to purchase a comprehensive health insurance policy that covers all of your and your family’s medical needs.

While we previously relied on our jobs’ health insurance coverage, Covid-19 has shown us the value of investing in a supplemental plan that provides protection against a variety of health scenarios not covered by the company’s plan.

Health insurance has never been more necessary than it is now, especially because entire families could develop communicable diseases like Covid-19 and require costly treatment. In such cases, comprehensive health care insurance may ensure that the entire family receives the best possible care and medication without adding to the burden that the breadwinners are already dealing with.

Furthermore, with the constant growth of medical inflation, it is more important than ever to have comprehensive health insurance. In truth, many consumers choose for health insurance with the lowest prices and end up with insurance that is inadequate in an emergency. When the insurance limit is reached, such myths compel people to tap into their savings, something they would not have to do if they had invested in comprehensive and adequate health coverage in the first place. You can also choose a top-up health insurance plan if you currently have a policy but want to expand the coverage limit.

What is a Supplemental Health Insurance Plan (SHIP)?

The top-up health insurance plan is a wise addition to your existing health insurance policy, as it provides medical coverage in addition to the policy you have already purchased or got from your employer. It is an indemnity policy that allows you to cover medical expenses in excess of the sum insured under your ordinary policy, protecting you from costly medical crises. The following are the most important things to know regarding top-up health insurance plans:


  • The top-up plan has an obligatory deductible, and you will only be covered when you have paid the deductible. For example, assume your firm offers you a medical policy with a sum insured limit of INR five lakh and you choose to buy a top-up worth extra INR seven lakh for added security.
  • The top-up plan is only available after your initial sum assured has been exhausted. In the event that you require treatment for INR nine lakh, the initial insurance will cover INR 5 lakh and the top-up will cover the remaining INR four lakh.
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  • If you are concerned about the coverage provided by your current policy, top ups are a prudent and cost-effective choice, as they are less expensive than basic health insurance.
  • In-patient hospitalization fees, pre-hospitalization and post-hospitalization expenses for up to 60 days and 90 days, daycare treatments, some organ donor expenses, emergency ambulance charges, and domiciliary treatment expenses are frequently covered by top-up plans.
  • Top-up policies don’t require pre-medical screening until you’re over 55, so buying them when you’re younger can keep you protected for longer and at a lesser cost.
  • Look for plans with greater deductibles when choosing the ideal plan for your needs, and make sure there are no overlaps in the coverage supplied by your basic plan and the top-up you’re contemplating.
  • Most of the exemptions in top-up plans are likely covered by your base plan, so you don’t have to be concerned. When evaluating pre-existing health issues, check the waiting period on the plan and look for policies that cover pre- and post-hospitalization costs adequately. Before selecting a top-up, you should think about maternity coverage and deductible criteria for a single illness.
  • Also, be sure that your family members, including as your parents, children, and spouse, are covered by your top-up plan.
Top-up Plans Come in a Variety of Forms
When it comes to top-up health insurance coverage, there are two sorts to think about.
  • Plan to supplement your income
This plan provides insurance coverage in addition to your regular policy’s coverage, up to a specific maximum. When your medical expenses exceed the plan’s deductible maximum, your top-up plan kicks in.
Super-supplementing strategy
Super top-ups provide additional insurance coverage even when your medical bills exceed the threshold level, with more benefits and sum insured than top-up plans. The difference between the two plans is that the top-up plan considers the threshold limit/deductible when processing each individual claim, whereas the super top-up plan evaluates all claims that arise during the policy’s term.
Super top-up plans cover claims based on the entire amount of medical expenses incurred throughout the policy period, whereas a top-up plan simply covers individual claims. Furthermore, the top-up plan only covers claims when a single claim exceeds the sum insured limit, whereas the super top-up plan provides coverage when the cumulative claims during the insurance period surpass the threshold level.
While both plans offer advantages, you must decide which plan is best for you and your family. A top-up plan would suffice if you and your family are relatively healthy and do not run the danger of having a chronic ailment. If you have pre-existing health conditions or believe you or your dependents are at danger of developing chronic illnesses in the future, super top-up policies will be beneficial.
Advantages of Supplemental Health Insurance Plans
The following are some of the benefits of purchasing a top-up health plan:
  • Keeping medical costs down
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The cost of hospitalization and medication is steadily rising, and your basic insurance plan may not be adequate to cover your and your family’s expenses. It is prudent to invest in a top-up plan in such a case since it prevents you from depleting your resources even if your basic health insurance plan is depleted. As a result, a top-up plan can allow you to receive high-quality therapy without incurring additional costs.
Possibility of increasing your insurance coverage
Investing in a top-up plan allows you to increase your policy coverage while keeping your basic policy in place. Because top-ups are more inexpensive than basic plans, it is better to invest in top-ups to increase your sum insured rather than bigger sum assured basic health policies, which would cost more in terms of premiums paid.
Protection for senior citizens
When compared to a bigger sum assured basic health policy, top-up insurance plans provide greater and more comprehensive coverage for senior citizens at very low premiums. Furthermore, many top-up plans include no restrictions or sub-limits on hospital charges, making them ideal for senior persons who may need repeated treatments.
Discounts for families and tax breaks
Some top-up plans offer family discounts, which include insurance for dependents such as parents, children, and spouses up to a certain limit. In addition, under Section 80/D of the Income Tax Act, you can get a tax break on the premium you pay.
Convertibility is simple, and you can renew yourself for the rest of your life.
Many top-up health-care plans have the option of effortlessly changing to basic health-care insurance. You also get the opportunity to renew it for the rest of your life, making it a constant in your life.
Cumulative bonus 
If you don’t need the top-up insurance during the policy time, you can get a cumulative bonus for each year you go without filing a claim, up to a certain limit.
If you are a corporate employee with a company-provided insurance policy, a senior person, or your basic healthcare plan has a low sum assured amount, you should invest in a top-up plan. Even if you don’t fit into any of these categories, it’s always better to be overprepared than underprepared in the event of a medical emergency.