General Insurance - Get Over Your Worries with Top-Up Plans

1. General Insurance

2. Get Over Your Worries with Top-Up Plans

3. When one plans to have insurance of any kind, the first point of concern is- how much to buy? Insurance is definitely a pre-planning tool and helps you to keep financial worries away. • So it is imperative to understand your requirements and your budget. Buying insurance plan randomly will not aid you to plan for the rainy day, instead it will become a burden and opting out might not be possible before a certain period of time. The same concern arises when you are buying health plan. • But there is good news for you. Now health top-up plans are there for your rescue. • Planning does help but it may not serve any purpose when it comes to health issues. Illness of any kind can get on your nerves and savings at any time and unexpected number of times. • You might have a health plan with sufficient sum insured but life can surprise you with unfortunate events constantly and you might fall short of financial aid you get from your insurance plan. Over and above, premiums increasing every year may become unaffordable.

4. What is health top-up plan? • Top-up plan is a kind of coverage that provides you funds when sum insured of your existing health policy is exhausted. It is an extended coverage you get over and above your existing policy coverage. A certain threshold limit or deductible amount is chosen by you while buying the top-up plan. • But there is a caveat. The General Insurance Company pays you only when your bill is exceeding the threshold limit. If there are two bills, the one that has crossed threshold will be covered. • Another bill which is lesser than the chosen threshold limit will not be covered. • Let us understand the concept of top-up plan with the help of an example.For instance, Ms Priya has a health policy with Rs 10 lakhs as sum insured. She had to undergo a surgery for which the hospital bill of Rs 8 lakhs is incurred. • Since she carries health policy worth Rs 10 lakhs, her insurance company will pay for entire amount. However, if her bill had exceeded Rs 10 lakhs, say it was Rs 11 lakhs she would have paid the extra amount of Rs 1 lakh from her pocket.

5. Why top-up plan is a must? • Top-up plan has been designed keeping the needs of consumers in the view. Here is the list of features of top-up health plan that makes it a must-buy. Top-up plan kicks in when existing policy sum insured amount is exhausted. • You do not need to buy other health insurance policies. This saves you from paying premium for another health policy. • Buying top-up plan is like upgrading the existing health policy. Due to this reason, premium is cheaper than the regular health policy. However, it pays only after certain threshold limit is crossed. • Top-up plan can be bought from a different insurance company. That is, your regular health insurance company and top-up plan insurance company need not be same. • Benefits of regular health insurance policy and top-up insurance policy are similar. You get tax benefits. Coverage for pre-existing diseases can be availed. Coverage for family is also available besides the coverage for individual.

6. Is it necessary to have regular health policy to have a top-up health policy? • No, it is not required to have regular health insurance policy in order to buy a top-up health policy. Though the concept is to upgrade the existing policy, it is not necessary to possess a regular policy. • The idea is to enable consumers to pay for their medical bills in an affordable way. In case, the insured does not have any existing health insurance policy, the threshold limit opted by him would work as deductible. • That is, a specific amount of bill will have to be paid by the insured. Once this amount is paid, the top-up plan can be used to pay the remaining amount. • [Source: http://www.policyx.com/blogs/get-over-your-worries-with-top-up-plans-deductible-health-insurance/]

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