With the ever-increasing cost of medical facilities in India, the basic health insurance plans may turn out to be insufficient. For instance, if you need to undergo surgery, the sum insured of your base health policy may quickly be exhausted, forcing you to spend your savings.
In such situations, the cushion of a super top-up health insurance plan gives you the extra help. It provides you with financial assistance when your base sum insured is exhausted. Are you wondering how a super top-up works? Do you want to find out how you can save money if you opt for a super top-up plan?
We have got the answer to all your questions in this article.
What is Super Top-Up Health Insurance?
Super top-up plan is an insurance product which provides financial assistance over and above the basic sum insured of your base health insurance online. The super top-up plan kicks in only when your medical expenses go above the threshold limit of the deductible amount. The most beneficial feature of this plan is that its premium is low, making it more affordable.
A super top-up plan is an excellent purchase if you want added coverage against hefty medical bills when you think your basic insurance may be insufficient.
How Does a Super Top-Up Insurance Plan Work?
Super top-up plans can be compared to a spare tyre, without which you may be able to drive your car, but it can be very risky. To understand how a super top-up plan works, let us first understand some terms and then take the help of an example to get a better picture.
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- Deductible – Each super top-up plan comes with a pre-determined deductible amount, which must be covered by your basic sum insured or must be paid by you.
- Coverage Activation – After your medical expenses go beyond the deductible limit, the super top-up plan will start covering the medical expenses.
- Cumulative Coverage – Unlike the basic insurance plans, super top-up plans cover multiple expenses hospitalisation, in a year.
Now let us consider an example. Suppose a person has a basic health insurance of 3 lakhs. He also has a super top-up plan with coverage of 10 lakhs and a deductible of 3 lakhs. Now, if this person gets hospitalised and the cost totals up to 8 lakhs, the base policy will cover 3 lakhs and since the remaining (5 lakhs- 3 lakhs deductible) 2 lakhs will be covered under the super top-up plan.
Saving Money with Super Top-Up Insurance
Here are some ways in which you can save money with a super top-up plan.
- Coverage Beyond the Base Plan – As we have seen in the example above, the super top-up plan offers coverage beyond the base insurance plan. Thus, the money that you would otherwise spend from your pocket is paid by the super top-up plan. In the above example, the person only had to pay the deductible amount. The excess medical expenditure was covered by the super top-up plan, which resulted in savings for the insured.
- Affordable Premium – As opposed to purchasing a fresh base policy, super top-up plans have a more affordable premium. For example, if you buy a basic health insurance with coverage of ₹5 lakhs, you may have to pay a premium of ₹8000-₹12,000. However, when you buy a super top-up plan with coverage of ₹10 lakhs and ₹2 lakhs deductible, your premium may only be ₹2000-₹4000.
- Tax Benefit – You can also save money when buying super top-up plans by way of tax deductions. The premiums that you pay towards super top-up plans can be claimed as deductions under section 80D of the Income Tax Act, up to a limit of ₹25,000. And if you are a senior citizen, the deduction limit is ₹50,000.
Greater Coverage and More Savings with TATA AIG Super Top-Up Plans
Super top-up plans work as an extra shield, saving you from heft medical expenses. They are more affordable than buying a second base plan and also offer tax benefits. Thus, resulting in financial savings all along.
If you also want to take advantage of the super top-up plans, TATA AIG has you covered. You can consider their super top-up plan, known as TATA AIG Medicare Plus. It is an excellent health investment for individuals of all ages be it a 91 day baby or a 71 year and above senior citizen.
TATA AIG super top-up plans offer coverage for various medical expenses, such as treatment in the hospital, at-home treatment, pre and post-hopsitalisation charges, medical bills and much more.
You can choose a tenure and sum insured as per your requirement and get adequate protection in times of medical emergencies.