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Key Differences Between Health Insurance Top-Ups And Riders

By Finserv MARKETS - Aug 23,2019
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Top-Up Plans Vs Riders In Health Insurance

Shubham had a health insurance which gave him a cover of up to 3 lakh — enough for his coverage, he thought. When he got paralysed due to an accident, the hospital bills surpassed his coverage and burnt a massive hole in his pocket. His family was forced to borrow money from their relatives to pay for hospital bills. Shubham had neither a rider on his insurance since he had not anticipated this illness at all, nor did he get any top-up, and it resulted in him and his family facing such hard times.

In cases of severe ailment when the medical bills are bound to increase, riders and insurance top-ups can be a lifesaver — quite literally. Besides, the medical expenses are ever increasing — experts say that the yearly rate of inflation in the medical sector now stands between 15 to 18 percent. The reasons are said to be the rising costs of medication, equipment, and hospitalization. This is when it becomes crucial to get a health insurance in India. If you are confused about the meaning of insurance add-ons and riders, their functioning and application, then read on to find about the fundamental difference between health insurance top-ups and riders.

What are health insurance top-ups?

Health insurance top-ups available on Finserv MARKETS cover your medical bills after they reach the threshold limit provided by your insurance company. Your insurance company does not cover the expenses after it reaches the policy limit, so this is where getting an insurance top-up becomes handy. It’s like having an extra tyre for your car — when one of your wheels gets punctured, and your vehicle cannot cover that extra mile under any circumstances, the spare wheel comes handy. Insurance top-ups are a stepney to your health insurance.

However, you must be aware of the insurance threshold. The top-ups only come to your aid if your additional hospitalisation costs reach your original insured amount. For example, if you have a top-up of 3 lakh and your deductibles are only 2 lakh, then the top-up plan will not be valid. It only comes to play once your medical costs reach the insured amount. This is when you must watch out for the distinction between these two so that you can choose the better, especially for essential insurance plans such as your family health insurance.

What are insurance riders?

Insurance riders available on Bajaj Finserv MARKETS, are provisions to your existing insurance policy that provides you with the option of additional coverage in specific situations. They are not just limited to health can even be added to other forms of policies such as life, auto, rental, and homes.

In case of critical illness rider, the policyholder is entitled to receive health insurance benefits if diagnosed with a critical illness. Similarly, disability riders provide coverage in case of an accident which brings in sudden disability. There is also the term rider, which offers monthly compensation to the nominee in case of the death of the insured.

Which one should you get?

Often, choosing between a rider and a top-up can be a confusing task, especially when you are choosing one for your family health insurance. A rule of thumb is that if you know the estimated cost of the treatment — hospitalization charges, medical cover, and post-discharge charges — then opt for a rider.

It would help if you went for a health insurance top-up plan when you cannot fathom the medical expenses but are sure that they are bound to cross the threshold amount — the financial cover of the existing insurance.

If you are confused about where to buy top-ups and riders from, then you can check out Bajaj Allianz Extra Care Plus Cover top-up plans that provide you with In-patient hospitalization cover, which takes care of the pre and post hospitalization expenses that occur 60 days before hospitalization or 90 days after hospitalization. It also provides emergency road insurance cover, organ donor expenses, along with coverage for all day care treatments expenses. These features make Bajaj Allianz Extra Care Plus, available on Finserv MARKETS, a great choice for individuals looking for health insurance in India.

Bajaj Allianz Extra Care Plus has a wide range of rider plans, such as family income rider, accidental death benefits rider, and critical illness riders, among others. These wide ranges of rider options provide you with just the added protection you need with your insurance cover.

Conclusion

Policyholders have the option to attach riders to any insurance plan of their choice, such as family health insurance, endowment plans, money back plans or unit linked insurance plans. However, it is recommended that you should choose the policy — the rider and the add-on — based on your individual needs, the needs of your family, and future plans for an all-around, comprehensive coverage for the family.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522