InvestorQ : What is the Top-up in Medical Insurance plan & share some examples?
Gayatri Surendran made post

What is the Top-up in Medical Insurance plan & share some examples?

Purvesh answered.
4 months ago
A top-up plan is like a regular health insurance policy that covers the hospitalization and other expense only after a threshold (known as deductible) is crossed. The deductible is the amount that the insured has to bear over the sum insured, it is generally paid before the benefits of top-up could flow to the insured. Therefore, it is an effective way to increase one’s health insurance benefits. One can always opt for an insurance policy and take a top-up to cover additional expenses over and above the sum insured.

However, before taking a top-up policy one has to ensure that the deductible is not more than the sum insured in the base policy. Suppose, your health insurance policy has a sum insured of Rs. 2.5 lakhs then you should make sure that the deductible in your top-up plan does not exceed Rs. 2.5 lakhs, this way you can avail of the benefits of both the policies altogether.

For example, you buy a health insurance plan that covers your insurance expenses up to Rs. 5 lakh which does not cover you for COVID-19 treatment, in that case buying a top-up insurance plan with a deductible of Rs. 5 lakhs shall be taken for coronavirus. This would be cheaper as compared to other health insurance options.