Guide About Health Insurance Top-up Plans & Know Its Benefits

Guide About Health Insurance Top-up Plans & Know Its Benefits

Health Insurance plans provides cover for health emergencies and all associated costs. However, the most important task is to select the right coverage amount for your plan. You’ll have to pay money from your pocket if the hospital bill is more than your coverage amount. 

Getting a Top-up health insurance plan is as easy as clicking a few buttons, but you should apprise yourself of various top-ups, benefits, and related important points. This blog will give you a guide about everything related to health insurance top-up plans. 

What is  Top-Up Health Insurance Plans ?

If you have a running health insurance policy and feel it is not enough for your current needs, you can increase the coverage by buying a top-up plan. Top-up plans will help you in case when your claim amount exceeds the coverage. 

Top-up plans make sense if you have to increase the coverage without paying much in terms of premium. There are two types of plans: Top-up Plan and Super top-up plan.

  1. Top-Up Plan: You can use this top-up plan only if the claim amount is higher than the coverage that you have chosen. For instance, if you have a top-up plan of Rs.3 Lakhs along with a base plan coverage of Rs.3 Lakhs, you can use both together to pay off a hospital bill of Rs. 6 lakhs. Here only a single bill is allowed to be covered.


  1. Super Top-up Plan: This plan comes with a specific deduction. The policyholder will have to choose the deductible limit, after which the plan will start. 

For example, if the hospital bill is Rs. 25 lakhs and you have a base plan with Rs. 5 lakh coverage and a super top-up plan which covers Rs.15 lakhs and a deductible amount of Rs. 5 lakhs. 

Then the payment would be the breakout: Rs. 5 lakhs will be covered from your base insurance coverage. Then you’ll have to bear the deductible cost, i.e., Rs.5 lakh. After that, the super top-up plan insurer will cover the remaining Rs.15 Lakhs.  Super top-up allows you to cover N number of bills. 

Benefits Of The Health Insurance Top-up Plan 

  • Cost-Effective

Increasing the base offer is always a bad decision when it comes to the premium charges. The cost of buying a top-up health insurance plans is the cheapest option compared to increasing the base plan. 

For example, you have an existing health insurance plan provisioning coverage up to Rs. 5 lakhs. And after seeing the medical inflation, you can increase the coverage up to Rs.8 lakhs.

For increasing the coverage of the existing plan, you might have to pay an extra Rs. 6,000. However, if you choose to buy a top-up plan, you can also get it for Rs.2,000. 

Hence, it makes sense for you to buy a top-up on the existing health insurance plans rather than increase the current plan’s base coverage. 

  1. No Limit

If you wish to increase your existing health insurance plans coverage, you can only increase it up to a specific limit. Whereas buying a top-up plan has no limits. You can buy a top-up plan equal to or higher to your existing plan as per your convenience to pay the top-up premium and need for cover.

  • Pre-Existing Disease Coverage

Some of the insurance agencies have the option of providing a top-up plan for pre-existing diseases. This is useful while buying a top-up on a senior citizen’s health insurance plan. Usually, there is a waiting period of 6 months to 1 year involved in cases where policyholders have to wait for a certain amount of time before claiming the settlement.     

  • Tax Benefit

Like any other health insurance plan, you can get a tax benefit on the premium paid by you. You can reduce your tax liability under section 80D of Income Tax Act 1961 by Rs.25,000, and if the policyholders’ age is above 60, you can claim the deduction up to Rs.30,000. 

  • No Medical Check-up

After cost-effectiveness, it can be considered as the best feature. Top-up health insurance plans do not require any medical check-ups. The age limit is up to 55 years, and if the policyholder is above 55 years, he will have to go through a check-up. 

These are some of the important benefits provided by the top-up health insurance plans. You can find all the above features in a single health insurance plan. Various such top-up plans can be compared and purchased from Bajaj Finserv’s website

There is usually confusion among the policy buyers around a rider plan and a top-up plan. Let us understand the difference between them. 

A rider plan adds benefits to your basic health insurance plan. You have to buy the rider plan along with your health insurance plans. You can add riders like rent waivers, hospital cash allowance, etc. The top-up and the super top-up plans are bought separately from the existing plan. The top-up plan increases the cover in the already running health insurance plan. 

It is important to read out the policy papers carefully before buying a top-up on your health insurance plans. It is the most cost-effective option to increase your coverage amount. The idea of the top-up plan is to increase the cover and minimize the premium. 

However, do not forget to thoroughly check the terms and conditions as they may contain some information about the waiting period. Also, do not forget to check the deductible criteria.  



Leave a Reply

Your email address will not be published. Required fields are marked *