Tips To Make The Most Of Top-up Health Plan

We all want to be financially secure at all times and we work hard in achieving that goal. As individuals, we plan our finances keeping in mind our goals. But one thing that is out of our control is a medical emergency. One can never predict how and when the need may arise for medical treatment or hospitalization. And medical inflation has skyrocketed costs of treatment to such high levels that it is very difficult to settle medical dues out of our own pocket. This can most likely cripple our finances and long-term savings.To counter this, the best tool in use today is a good medical health insurance policy. In exchange for regular premiums, a health insurance company provides financial coverage to the insured in times of medical emergency.Let’s take a look at some of the advantages of buying a health insurance policy in India.

The number one advantage of a health insurance plan is, of course, financial protection. Your hard earned, long term savings that you accumulated bit by bit could vanish in a matter of days if you have to pay hefty medical treatment costs out of your own pocket. That’s where a health insurance policy really scores. It lets you keep your savings untouched and takes care of your medical expenses.

State-of-the-art medical facilities nowadays provide the best treatment one can hope for. But their costs can be very high. Since health insurance will provide for your medical treatment, you can avail the best healthcare services irrespective of your financial standing.

A lot of people think that health insurance can be a waste of funds if it is not claimed in a year. But that is not true, because you can avail a no claim bonus that allows you to get a higher sum insured if the previous year was claim free. And the true importance of health insurance is very much evident when you actually claim a policy and see your medical expenses being paid without worrying about it yourself.

What if you used up your health insurance claim for the year and found yourself facing some more medical expenses for the same year? You cannot claim your policy again and you might have to pay it yourself. Not if you have a top-up plan in your existing health insurance. A top up plain lets you avail additional coverage over and above your insured sum for a small increment in the premium.The best benefit of a top op of your existing policy is that the premiums are very low compared to a whole new policy with additional coverage.

A basic health insurance policy will let you claim the insured sum only once in a year. But sometimes, a need arises that requires you to pay additional medical expenses after you’ve already exhausted your health insurance. In such an event, a top up health insurance plan can be a godsend, because you can avail additional benefits above your insured sum in the same year. The only thing you’re required to do is pay a slightly higher premium and opt for a top-up health insurance.

- If you feel your current health insurance plan is not enough to cover your medical expenses, you can opt for a top up on the same plan to increase coverage.
- If you want to increase your coverage but do not want to pay higher premiums for a separate policy, you can opt for a top-up plan that gives you higher coverage for lesser premium amounts.

It is always a good idea to compare different insurance products before you make your decision. When it comes to top-up plans, ensure that the extra benefits you’re getting are worth the extra premium that you have to pay. Compare the top-up insurance premium with that of a separate health insurance policy and decide which one of the two will be better for you.

You might be attracted to the extremely low premium rates of top-up health insurance plans but keep an eye on the deductible amount as that is something you will have to pay from your own pocket. Insurers offer low premiums in exchange for higher deductibles so it is wise to carefully understand the deductible amount.

Thus, a health top-up plan can be very useful in times when you face multiple health issues in the same year. You can decide whether you require a top-up or not based on your age, health and the insured sum of your existing policy. Some insurers also provide super top-ups, which lets you claim your insurance not just twice, but multiple times in a year. In the end, your health is what matters most and it is always wise to give it the priority that it deserves.

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.