Though, at times people tend to fall sick or succumb to certain health issues which can cause slight disruption in daily life. To battle and avoid such complications, especially monetary wise, people enlist the aid of top up plans. Here is why having a top up plan for health insurance can prove to be beneficial in the long run.
Advantages of having a Top Up Health Insurance Plan
Cheaper than regular plans:Top up health insurance is generally cheaper than normal health insurance plans if the deductibles are higher. This allows for better and cheaper choices for health protection for you and your loved ones in times of need.
Simpler purchase option:Many health insurance policies come with a number of restrictions and limitations that can affect the redemption value. Specific illness, age restriction are few limitations that normal health insurance has. Top up health insurance plans have no such restrictions and can be easily be purchased from any insurer or agent.
Tax benefits:Under section 80 D of the Income Tax Act, top up plans are included for tax reductions. This makes them more appealing to the masses and a more popular option of health insurance policy.
EfficientBuying and purchasing a top up health insurance is a more advantageous and more beneficial option rather than extending a pre- existing health insurance. This is a cheaper option with the same amount of returns and top up benefits like an extended health insurance cover at the nominal cost.
How does a top up plan function?The way a top up health insurance works is on a cost sharing basis. Here exists a deductible limit. All medical expenses that are below and up to the limit have to be borne and paid by the policy holder. If the medical expenses are higher and go beyond this limit, then all amount above this deductible limit is borne by the top up plan. This means that the cost; when above the deductible limit, is shared by the top up plan and the policy holder together.
This kind of top up benefit really helps one get out of a financial predicament when it comes to medical expenses and hidden costs.
Learn more about different Health Insurance Plans here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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