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What is a Health Insurance Top Up?

By Finserv MARKETS - Dec 31,2019
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Health Insurance Top Up

With drastic changes in diets and lifestyles, Indians today are more prone to developing lifestyle illnesses than the generations before us. A recent report by GOQii, called the “India Fit Report 2019”, has shown that Indian population under 45 experienced a 40% rise in diabetes and 90% spike in blood pressure in the last year[1]. Therefore, as a precautionary measure, health insurance has become a more relevant and essential safety net than ever before.

In particular, the health insurance plan available on Finserv MARKETS is a popular option among Indians today. With a coverage amount of up to Rs. 50 lakhs and tailor-made insurance plans for every need, this health insurance policy offers various benefits to put one’s mind at ease.

During medical crises, health insurance becomes an essential need for the financial health of every individual and family. However, in certain cases, policyholders may find that their medical bills could exceed their health insurance coverage. This can be extremely distressing, since upon crossing the coverage limit, the individuals would have to pay their medical expenses out of their own pockets.

In such cases, one might be faced with two choices.One could either opt for a fresh health insurance plan that could provide additional coverage. Or, one could go for specific top ups offered with one’s basic health insurance that could also cover one’s medical expenses. If a dilemma like this resonates with you, here are a few things you should consider before making the final decision:

What are health insurance top-ups?

Let us first begin by demystifying the concept of health insurance top ups. Health insurance top ups typically come as an additional option with the existing health insurance plan you have availed. Their purpose is to provide coverage over and above your base health insurance cover. On Finserv MARKETS, for example, you can avail a health insurance top up plan called Extra Care Plus. It covers a variety of medical expenses such as hospitalisation charges, ambulance charges, maternity-related expenses and organ donor costs.

Simply put, here is what happens when you opt for a top up. Once you reach your cover limit, which is set by the sum assured of your health insurance policy, you will not be liable to pay the additional amount. Instead, your health insurance top up will kick in and cover the remaining amount, provided it meets the deductible limit. The deductible limit here is the minimum amount of medical expenses that you or your health insurance must cover before the top up coverage can kick in.

Health Insurance Top Up

Source: TheWealthWisher

Are they a better choice than a new health insurance plan?
While top ups can be a convenient option, especially if they are available as an extension to your health insurance plan, there is another aspect to consider. To some, it might seem more convenient to simply opt for a fresh health insurance plan instead. After all, availing health insurance today is more convenient than ever. Simply taking on a new health insurance plan to cover your additional medical expenses might seem like the simplest option in the book.

However, there is another important point to consider here: cost. When you avail a new health insurance plan, you will have to start paying premiums in accordance with your sum assured. These premiums will be the standard amounts that are typically charged towards health insurance plans.

In the case of health insurance top ups, the premiums are bound to be lower than that for new health insurance policies. This is because they come with a deductible limit, and hence pose lesser risk for insurers. Premiums for health insurance top ups, are therefore considerable lower and far more economical. Especially, when compared to the range of additional coverage they offer, these low premiums are particularly worth the money.

The health insurance top up plan called Extra Care Plus available on Finserv MARKETS, is an excellent example of a top up that can serve as a safety net during medical emergencies. It offers a low deductible limit, which means that the plan can kick in much earlier than most health insurance top ups. It also offers nominal premium amounts starting as low as Rs. 2500 per year while offering coverage amounts as high as Rs. 50 lakhs.

When in doubt about extending your health insurance coverage, it is important to do your due research and figure out the best coverage options for you. But when it comes to finances, health insurance top ups have an advantage over fresh health insurance policies due to their low premiums. To make the most of the Extra Care Plus health insurance top up plan, you can avail the policy online on Finserv MARKETS. If you are under the age of 55 years and have a clean proposal form, you may not even need to undertake a medical test.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

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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