A top up plan helps to increase the medical insurance coverage over and above your existing base policy at a comparatively lower cost as compared to increasing the sum assured in the base policy. Top-Up plans complements the insured’s health policy and protects the buyer from additional expenses.
Types of Top-Up Plans
There are two kinds of Top Up plans :
- Regular Top-Up plan: This type of plan offers additional coverage beyond the deductible/threshold limit. The deductible in a top up plan is often/usually kept equal to the existing health insurance policy. For the deductible amount the insured can either use the Sum Insured from an existing health plan or contribute from their own pocket. The regular top plan will apply the deductible requirement for every claim.
- Super Top-Up Plan: This type of plan offers additional coverage beyond your normal health insurance plan and claims will be paid once you exhaust the yearly cover provided by your base health insurance policy. It works on an over all level and is activated once you exhaust your base cover in a particular year. Unlike Regular Top – Ups, the threshold/deductible clause is not applicable once you exhaust your Sum Insured limit in a policy year.
Features of Top Up Plans.
- Top Up Plans are more cost effective as compared to premiums of regular health policies.
- No Claim benefit is not available under Top Up Plans.
- The premiums paid under the policy is eligible for tax deduction under Sec 80D of Income Tax Act.