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 duvet quantity would have been sufficient, however not right this moment. Consider one other situation: Your employer offers you a medical insurance cowl of Rs. 3 – 5 lakhs for your loved ones, or you’re coated for the same quantity below a State Government health insurance scheme.

In all of the above eventualities, contemplating the present and future anticipated medical inflation, the duvet quantity won’t be sufficient. In such a situation, you’ll be able to improve your medical insurance protection with a top-up or a super top-up health insurance policy.

What is a top-up medical insurance coverage?

A top-up medical insurance coverage pays solely when the declare quantity exceeds a specified quantity. The specified quantity is called a deductible. For instance, you’ve got purchased a top-up medical insurance coverage with a sum insured of Rs. 10 lakhs and a deductible of Rs. 5 lakhs. In this case, the top-up coverage can pay solely at any time when the declare quantity exceeds Rs. 5 lakhs. Consider the next eventualities for declare fee.

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 can pay 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 eventualities the place the medical insurance protection quantity will not be sufficient. In such a situation, you should buy a top-up medical insurance plan. You can hold the non-public medical insurance / company medical insurance / Government medical insurance sum insured quantity because the deductible threshold.

For instance, you’ve got an current medical insurance coverage with a Rs. 5 lakhs sum insured. You need to improve your protection to Rs. 20 lakhs. In this case, you should buy 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 in the course of the 12 months must be greater than the deductible quantity for the declare to be paid. What when you have already exhausted your private medical insurance cowl, and the next declare is decrease than the deductible? In such a situation, the top-up coverage won’t pay. Here, an excellent top-up medical insurance plan can come to your rescue.

What is an excellent top-up medical insurance coverage?

A brilliant top-up coverage is just like a top-up coverage. However, there’s one important distinction. In a top-up coverage, each declare must be greater than the deductible quantity for it to be paid. But in an excellent 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 shall be paid.

For instance, you’ve got purchased an excellent top-up medical 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 shall be paid when the mixture of declare quantities in the course of the 12 months is greater than Rs. 5 lakhs. Consider the next eventualities for declare fee.

The declare quantity is Rs. 6 lakhs. The tremendous top-up coverage can pay 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 can pay the declare as the mixture of the two declare quantities (Rs. 6 lakhs + Rs. 3 lakhs) within the 12 months is greater than the deductible of Rs. 5 lakhs.

Please observe within the above instance, in the event you would have purchased a top-up coverage as a substitute of an excellent 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, an excellent top-up plan is helpful if a person is affected by an sickness that requires hospitalisation a number of occasions in a 12 months.

How to reinforce your medical insurance protection?

At the beginning of the article, we noticed some eventualities whereby your medical insurance protection could have turn into insufficient. In such a situation, as a substitute of shopping for a brand new medical insurance coverage with the next sum insured, you should buy a top-up / tremendous top-up coverage. You can select your base medical 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 will 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 may be reached at LinkedIn.