How to reinforce your medical health insurance cowl with top-up and tremendous top-up coverage? MintGenie explains
Consider this situation: Did you purchase a health insurance cowl of Rs. 3 – 5 lakhs for your loved ones a couple of years again? At that point, the quilt quantity would have been enough, however not right now. Consider one other situation: Your employer gives you a medical health insurance cowl of Rs. 3 – 5 lakhs for your loved ones, or you might be coated for the same quantity underneath a State Government health insurance scheme.
In all of the above situations, contemplating the present and future anticipated medical inflation, the quilt quantity won’t be enough. In such a situation, you’ll be able to improve your medical health insurance protection with a top-up or a super top-up health insurance policy.
What is a top-up medical health insurance coverage?
A top-up medical health insurance coverage pays solely when the declare quantity exceeds a specified quantity. The specified quantity is named a deductible. For instance, you’ve purchased a top-up medical health insurance coverage with a sum insured of Rs. 10 lakhs and a deductible of Rs. 5 lakhs. In this case, the top-up coverage pays solely each time the declare quantity exceeds Rs. 5 lakhs. Consider the next situations for declare cost.
Scenario 1: The declare quantity is Rs. 4 lakhs. The top-up coverage won’t pay any quantity because the declare quantity of Rs. 4 lakhs is decrease than the deductible quantity of Rs. 5 lakhs.
Scenario 2: The declare quantity is Rs. 6 lakhs. The top-up coverage pays Rs. 1 lakh (Claim quantity Rs. 6 lakhs – Deductible quantity Rs. 5 lakhs). In the identical 12 months, if there’s one other declare of Rs. 3 lakhs, the top-up coverage won’t pay something because the declare quantity is decrease than the deductible of Rs. 5 lakhs.
At the beginning of the article, we noticed some situations the place the medical health insurance protection quantity shouldn’t be enough. In such a situation, you should purchase a top-up medical health insurance plan. You can maintain the non-public medical health insurance / company medical health insurance / Government medical health insurance sum insured quantity because the deductible threshold.
For instance, you’ve an current medical health insurance coverage with a Rs. 5 lakhs sum insured. You wish to improve your protection to Rs. 20 lakhs. In this case, you should purchase a top-up plan with a Rs. 20 lakh sum insured and a Rs. 5 lakh deductible.
In the case of a top-up coverage, each declare through the 12 months needs to be increased than the deductible quantity for the declare to be paid. What if in case you have already exhausted your private medical health insurance cowl, and the next declare is decrease than the deductible? In such a situation, the top-up coverage won’t pay. Here, a brilliant top-up medical health insurance plan can come to your rescue.
What is a brilliant top-up medical health insurance coverage?
An excellent top-up coverage is just like a top-up coverage. However, there’s one vital distinction. In a top-up coverage, each declare needs to be increased than the deductible quantity for it to be paid. But in a brilliant top-up coverage, the mixture of all claims in a 12 months is taken into account. If the mixture of all claims in a 12 months exceeds the deductible, the declare might be paid.
For instance, you’ve purchased a brilliant top-up medical health insurance coverage with a sum insured of Rs. 10 lakhs and a deductible of Rs. 5 lakhs. In this case, the tremendous top-up coverage might be paid when the mixture of declare quantities through the 12 months is increased than Rs. 5 lakhs. Consider the next situations for declare cost.
The declare quantity is Rs. 6 lakhs. The tremendous top-up coverage pays Rs. 1 lakh (Claim quantity Rs. 6 lakhs – Deductible quantity Rs. 5 lakhs). In the identical 12 months, if there’s one other declare of Rs. 3 lakhs, the tremendous top-up coverage pays the declare as the mixture of the two declare quantities (Rs. 6 lakhs + Rs. 3 lakhs) within the 12 months is increased than the deductible of Rs. 5 lakhs.
Please notice within the above instance, for those who would have purchased a top-up coverage as an alternative of a brilliant top-up coverage, the second declare won’t be paid because the declare quantity (Rs. 3 lakhs) is decrease than the deductible quantity (Rs. 5 lakhs).
Thus, a brilliant top-up plan is useful if a person is affected by an sickness that requires hospitalisation a number of instances in a 12 months.
How to reinforce your medical health insurance protection?
At the beginning of the article, we noticed some situations whereby your medical health insurance protection could have turn into insufficient. In such a situation, as an alternative of shopping for a brand new medical health insurance coverage with a better sum insured, you should purchase a top-up / tremendous top-up coverage. You can select your base medical health insurance coverage sum insured quantity because the deductible quantity on your top-up / tremendous top-up coverage. Thus, a top-up or tremendous top-up coverage may help you improve your current health insurance coverage in an economical method.
Gopal Gidwani is a contract private finance content material author with 15+ years of expertise. He will be reached at LinkedIn.
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Updated: 20 Nov 2023, 02:00 PM IST