Factors To Consider While Buying A Top-Up Health Insurance Policy

What factors should I consider while choosing a health insurance policy? |  Mint

Health insurance is paramount to managing medical expenses and promoting a healthy lifestyle. Top-Up Health Insurance policies have gained popularity due to concerns about escalating medical costs. These plans provide adequate protection and are now widely accepted in the market.

How Does Top-Up Health Insurance Work?

A standard health insurance policy provides essential coverage, ensuring timely access to quality healthcare. However, Top-Up health insurance plans step in when medical expenses surpass the chosen sum insured. These plans offer additional coverage beyond the base policy’s limit, providing financial support when needed most. Top-Up Health Insurance policies offer these advantages at an affordable premium, enhancing financial security.

Before Purchasing A Top-Up Health Insurance Policy, Take Into Account The Following Points:

  • Policy Coverage

Please make sure the benefits and coverage of the top-up policy suit your needs by comparing them. Please list your healthcare requirements to determine whether the policy meets them. Additionally, look for additional benefits like coverage for contemporary treatments, organ donation costs, wellness services, second medical opinions, etc. Claims are subject to terms and conditions set forth under the health insurance policy. *

  • Deductible Limit

Most people frequently forget about deductibles. The deductible defines the amount the insured must pay out-of-pocket before the insurer pays. The majority of Top-Up Health Insurance plans include a deductible provision. The policy’s deductible limits make it more affordable. The lower the premium is, the higher the deductible.

Remember that the claim amount becomes eligible only after the insured has paid the deductible limits. Review the deductible cap amounts. If the high deductibles are high, you might have to pay a sizable out-of-pocket amount. Select the appropriate deductible limit after conducting a financial analysis. *

  • Waiting Period

Health insurance policies typically include waiting periods, which require the insured to wait before utilising the coverage for specific diseases, conditions, or treatments. For example, suppose you have a base policy with a 24-month waiting period for pre-existing conditions and a top-up policy with a 36-month waiting period. Both must be fulfilled before the Top-Up Health Insurance policy can reimburse your pre-existing disease-related expenses. It’s advisable to opt for policies with shorter waiting periods.

It is advisable to purchase the Top-Up Health Insurance policy in the same year that you purchased the Base Health Insurance policy to prevent these inconveniences.

  • Premium Concessions

Most Top-Up Health Insurance policies provide a variety of concessions, including those for online purchases, long-term agreements, families, etc. Concessions will cut the cost of the premium by a certain percentage, making it more affordable.

The ideal way to increase insurance coverage affordably is to understand what is top up in health insurance and invest in them. Anyone with a basic health insurance plan, such as an Individual or a Family Floater health insurance policy, can purchase top-up health plans. Under Section 80D of the Income Tax Act of 1961, the Top-Up Health Insurance plan premium will not be subject to income tax. **

*Standard T&C Apply

**Tax benefits are subject to change in prevalent tax laws.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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