Life, being an unpredictable journey, can take sharp, fatal turn at moments, which are capable of leaving one physically, mentally, emotionally and financially bruised. Mr. Das met with a life-threatening accident, which not only made him limp for the next six months, but also handicapped his savings while dealing with the heavy treatment costs. Though he had a health cover worth Rs. 300000 from his employer, he had to pay the balance amount of the treatment worth Rs. 500000 from his own pocket. This financial blow of Rs. 200000 affected his financial health, which took longer to recover than the recovery period of the injury.
Mr. Das was on a paid leave for a month and was recovering from his injuries, when one of his friends, Keshav, visited him. While expressing his concerns for his health, Keshav started discussing about the expense incurred on the treatment. Keshav explained how he got a Top up Health Insurance Plan the previous year, which helped him deal with the elevated treatment costs of any health concerns arising in the near future.
Generally, a health cover taken by individuals these days isn't enough to deal with the health needs of the entire family. But what if the claim amount is more than Rs. 300000 and is sufficient to deal with every underlying medical cost? As Mr. Das dealt with the balance costs from his savings, it not only burnt a huge hole in his pocket, but also put his future plans in jeopardy. It is not practically possible for everyone to increase the premium of their existing plan, or buy another policy. This is where top up health insurance plans come into the picture.
Knowing More about Top-Up Health Insurance Plans
Top up health insurance plans are a unique type of health cover policies that offer the insured with an additional coverage, which goes beyond the maximum limit of the existing health insurance policies. Such plans come handy when the threshold of the existing health cover is already used or exhausted and there are some medical costs left to deal with, which would otherwise exert pressure on the savings. No matter whether one holds a health cover plan from the employer or possesses an independent mediclaim policy, a top up health cover can always be purchased to deal with the inflating costs of medical treatment.
The top up plans normally work on the basis of a cost-sharing model, wherein the medical expenses up to the deductible limit or the treatment costs exceeding the assured medical claim have to be stomached by the insured. The medical insurance companies only deal with the costs incurred within the maximum limit of the policy. The top up plans step in and help the insured deal with the expenses that cross that threshold limit.
As of now, the top up plans offered by different companies can promise a sum insured between Rs. 50000 and Rs. 1500000, with the deductible amount ranging between Rs. 30000 and Rs. 500000, respectively. The underlying sum insured will provide full protection, apart from the deductible amount, which is covered by a normal health cover policy or through any other relevant source. Had Mr. Das covered himself through a top up health insurance plan, the policy would have kicked in to cover the differential amount of treatment, which amounted to Rs.200000, paid from his own pocket.
One of the most obvious advantages of the top up health cover plans is that they are cheaper in comparison to the normal health insurance policies, but only until the amount of deductible is higher. They are the most affordable means of extending the health cover, through a perfect combination of a basic policy and an ideal medical top-up. The second biggest advantage offered by these health insurance covers is the ease of purchase. There are no absolute restrictions regarding the choice of companies for getting a top-up health cover. One can have a desirable top-up plan from a company, different from the basic health insurance provider, without any fear of termination of an insurance contract or any other consequences. Thirdly, the top up health insurance plans are available in two distinct versions, including the individual cover and the family floater cover, and are eligible for deduction under Section 80D while filing an ITR.
Every bit of information outlined above essentially points out towards the need for a good, basic health insurance covering the insured against the hospitalization and treatment costs within the threshold limits, and backing it up with an ideal top up insurance plan to deal with the expenses exceeding the insured limits and avoiding the burden of medical costs from falling on the savings.
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