Top-Up Health vs Base Health Insurance Plan
The necessity of health insurance in challenging times is beyond comparison. A comprehensive health insurance plan stands important for you and your family during medical contingencies. However, your health insurance policy will cover the treatment and hospitalisation expenses only up to the sum insured amount you have chosen. Any cost beyond it needs to be taken care of by you. For additional coverage, health insurance providers offer top-up plans that take care of the expenses incurred when you exhaust your existing coverage.
In this section, we will discuss in detail the difference between a base plan vs top-up plan.
What is Base Health Insurance?
A basic or primary health insurance plan is a policy that covers you against any medical contingency. Here, you have to select a sum insured amount when buying the health insurance policy. The policy provides coverage for hospitalisation and treatment expenses incurred up to the sum insured amount chosen by you.
What is Top-Up Health Insurance?
Top-up health insurance is an extended cover over and above your existing base health insurance plan. It provides an additional sum insured amount that can be used in case you exhaust the current coverage of your basic plan. It is a cost-effective way to increase your health insurance coverage. However, note that top-up health plans can be purchased over and above your base health insurance and not independently.
Difference Between Top-Up Health Insurance and Basic Health Insurance
Many a time, people get confused about whether they should opt for a base health insurance with a higher sum insured or a policy with top-up plans. If you too are unable to decide between the two, take a look at the below table for a better understanding of base health insurance and top-up health insurance.
Base Plan vs Top-Up Plan |
Parameter |
Base Health Insurance |
Top-Up Health Insurance |
Premium |
If you opt for a basic health insurance plan with a higher sum insured, the premium for such policies will be expensive. |
Usually, the premiums for health insurance with top-up plans are relatively lower compared to health insurance with a high sum insured. |
Claim Settlement |
The claim settlement process is hassle-free. Depending on the insurer, you will be able to avail cashless claim settlements or reimbursement claims. |
Similar to health insurance with a high sum insured, claiming on your top-up health plans is hassle-free. Depending on your insurer, you can avail cashless claims or seek reimbursement. |
Deductibles |
Basic health insurance plans usually come with a low deductible to pay. |
Top-up health insurance plans tend to have a high deductible before the benefit initiates. |
Switching insurers |
Switching to another insurer is easy when it is a basic health insurance plan. |
Switching to another insurer with a top-up health insurance plan can be a complicated process. |
Type of cover |
Basic health insurance is a standalone policy cover. |
Top-up health insurance is usually purchased over and above your existing health plan. |
Which One Should You Choose?
Now that you know the difference between a base plan vs a top-up plan, you must be wondering which one is right for you, a basic health insurance plan or one with a top-up plan. If you are willing to spend on a high premium, you can opt for a basic health insurance plan with a higher sum insured. And in case you already have a health insurance policy, you can buy a top-up health insurance plan to take care of your medical expenses if you are about to exhaust your primary health coverage.
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Conclusion
Health insurance is a necessary financial tool that you must remember when planning your finances. It provides financial support to you and your family in case of medical emergencies, and there are many health insurance tax benefits to avail as well. No matter what your reasons are to buy a health insurance plan, make sure that you have sufficient coverage that is aligned with rising medical costs in the country.
You can buy health insurance plans and top-up plans at Bajaj Markets online. It allows you to benefit from features such as cashless claim settlements, reinstatement benefits, hassle-free renewals, and so on. Moreover, you can readily buy health insurance plans using the Bajaj Markets App at any time and on the go.
So, don't wait! Get yourself and your family a health insurance plan at Bajaj Markets, right away.
