Benefits of Top-Up Health Insurance Plans

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As we all know, a comprehensive health insurance plan offers protection to you and your family in case of unforeseen medical contingencies. However, have you ever thought about what happens if you fall short on your health coverage?

Let’s take an example.

Mr Anant bought a health insurance policy with coverage of up to Rs. 3 Lakh. A few years later, he was diagnosed with a life-threatening health condition. The hospitalisation and treatment expenses incurred were Rs. 5 Lakh.

Unfortunately, the health insurance plan he bought could cover expenses of Rs. 3 Lakh (chosen sum assured at the time of purchasing the policy) only. The remaining amount of Rs. 2 Lakh was to be paid by Mr Anant from his pocket. He had to use his life savings to cover out-of-pocket expenses.

However, if Mr Anant had opted for a top-up health insurance plan on his existing policy, he wouldn’t have to use his life savings. Top-up health insurance plans are a great way to avoid out-of-pocket expenses and more. Let us take a look at a few benefits of top-up health plans.

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Benefits of Top-Up Health Insurance

As explained above, top-up health insurance plans make sure that you can avail any healthcare service without worrying about the finances. The top benefits of buying top-up health insurance plans are as follows –

  1. Health coverage in addition to your primary plan

A top-up health insurance plan acts as a financial backup in case you exhaust your existing sum assured amount. Having this health coverage will keep you at peace, knowing that any additional medical expenses will be covered, and you and your family will have no financial overburden.

  1. High cover at an affordable premium amount

Top-health insurance plans are affordable. That means you can avail a higher sum assured at a nominal premium price. If you want to determine the total amount charged, you can use the health insurance premium calculator. Top-up health plans are quite beneficial for senior citizens seeking additional coverage on their basic health plan. As the chances of them falling sick are more, the top-up health insurance plan is a viable option.

  1. Covers pre-existing illnesses

Usually, health insurance plans do not cover pre-existing health conditions. However, you can extend your primary health plan with a top-up health insurance plan that covers these illnesses. It comes in handy in case of medical emergencies that may arise due to any pre-existing health condition.

  1. Tax benefits

Much like any other health insurance policy, the premiums paid towards the top-up plan can be claimed for tax deductions under Section 80D of the Income Tax Act, 1961. Individuals can claim up to Rs. 25,000; whereas, senior citizens can claim up to Rs. 50,000 under this section.

To Conclude

A top-up health insurance plan enhances the coverage of your primary health insurance plan and protects you against out-of-pocket medical expenses. If you are unable to afford the premiums for your desired coverage, you can choose to pay health insurance on EMI. Many insurers in India offer this facility. So, get in touch with your insurer and buy a top-up health insurance plan and enjoy extensive coverage at a nominal price.