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Health Insurance

What are the Benefits of Top-up Health Insurance Plan?

No one can determine life’s uncertainty, and no matter how many plans we make, something or the other is left behind, which generally is out of our reach and comprehension. The most major uncertainty that we see around us is in terms of our health.

“The top-up health insurance plan provides additional security and help make life more comfortable and hassle-free by not making us worry a lot about the extra charges all along with the policy.”

What are the Benefits of Top-up Health Insurance Plan?

The age-old adage still holds true that health is wealth, and it is essential to understand the importance of this adage in its most real sense. Sometimes, we purchase a health cover of worth some money, but before the policy could come to its fruition, some form of uncertainty strikes, and we are not supported by enough funds to cover our financial needs. It is at this time that we need a top-up plan to support our current health insurance policy.

It is like an additional support system in case of emergencies that go out of our hands. It can also be called a supplement to the existing policy as it is more about addition and being extra careful.

However, the critical question here is: What does this Health Insurance Plan comprise and what facilities does it entail?

The top-up health insurance plan is useful when your existing health insurance policy does not provide enough coverage to meet the high hospitalisation bills, and more funds are required to aid the patient. In this case, many times, either two insurance policies are purchased, or the assured sum amount is increased.

This is where the top-up health insurance plan helps increase the total cover value and expand the sum insured amount. It means that if the threshold amount of the policy is crossed, you are liable to have a compensation amount over and above the policy insured amount through the top-up health insurance plan.

Five reasons can be enumerated on the advantages of the health insurance plan

  1. There is coverage over and above the base plan (health insurance policy): We can never be sure of the amount any medical emergency can ask out of us, so it is always better to have an additional covering cost that can help us. This is the top-up health insurance plan’s function to cover the extra costs, thereby relieving us of the financial burden if and when the policy claim money is exhausted. There is an assurance that the insurer will incur additional costs.
  2. High Cover at an affordable premium: The best part about the top-up health insurance plan is that they are not expensive. They come at a very affordable rate, which means that a higher insured amount can be put to claim at a low cost. If used consciously, this plan gives senior citizens a good deal of viability as their probability of falling ill is the highest and a plan like this will be best suited for them.
  3. It combats rising medical inflation: In general, inflation in India is rising day by day, and medical inflation is undoubtedly on the rise. According to the statistics, medical inflation in India is around 20 percent as compared to 8-9 percent in the past years. This rising inflation increases the risk of uncertainty of payments as we never know which medicine or medical test will become even more expensive as time passes. This top-up plan safeguards us against this risk and helps deal with this kind of inflation effectively. One can simply pass on the risk to the insurance provider and reduce the financial burden vastly.
  4. It provides coverage against Pre-existing diseases: Health insurance policies cover the diseases that one is bound to have in future, but the top-up plans cover the conditions that one has a history of ailment in the family like diabetes, hypertension, etc. This is one advantage that top-up health insurance plans offer. They don’t just delve into the future of ailments and the history of it and provide financial relief for it. What is essential to be noted here is that a top-up plan cannot exist in isolation. It is a supplement to the pre-existing health insurance policy. Both have to live with each other simultaneously.
  5. Tax benefits: Like there is tax benefit enjoyed for the health insurance policy. Similarly, one can enjoy tax benefits in health insurance top-up plans too. Under Section 80D of the Income Tax Act, 1961, you can reduce your income tax liability up to Rs 25,000, and this holds true for family members like self, spouse and dependent children. Senior citizens over 60 years of age can enjoy a higher limit than this amount up to Rs 50,000. Medical plans, therefore, reduce your tax liability while offering you coverage at the same time.

A top-up health plan is a complement to the pre-existing policies in hand. It makes seeking financial help easier, convenient, and more secure. This plan works in tandem with the primary policy and shields you with the additional expenses in case the uncertainty is more significant, and the hospital bills are enormous. There will always be terms and conditions that one will have to adhere to. Once that is done, claims can be made, and more awareness on such plans can be generated.

What is most important to understand in a nutshell is that all terms and conditions must be read beforehand. Any emergency can strike people at any time, so it is essential to safeguard ourselves from every financial expense that we can incur in the course of our treatment. You can now buy health insurance plans online through various platforms like

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