Top- Up your Health Insurance Policy!

You realize the importance of having health insuranceLacs while now, he is getting a cover that is triple the
in times of rising medical bills and expensive newamount. This situation holds good for most of the
forms of treatments and get yourself and yourage brackets.
family covered in a health insurance policy - only toBut the thing to note here is an amount called as
realize that the insured amount is insufficient. This is‘threshold level' also known as ‘compulsory
what Mr. Sharma realized, here is how it happened.deductible' amount. This amount is the level above
Mr. Sharma bought a health insurance policy in yearwhich the top up can be utilized for paying the
2000 worth Rs. 3 lakh for his family of four, his wife,expenses. For example, for a 10 lakh top up amount,
his son and his mother thinking that it was anthe compulsory deductible amount is Rs. 3 lakh, the
adequate cover. Then this year (2010) his mothertop up amount will only pay for expenses that go
had to undergo a knee replacement surgery for herabove Rs. 3 lakh. Once the expenses exceed Rs. 3
persistent knee problem and since 4 year waitingLacs, the total expenses upto an additional Rs. 10
period had already passed, the treatment wasLacs will be paid. What this means is that, the
covered. The cost of treatment was Rs. 1. 5 lakhsCompany providing the Top up cover will not require
and Mr. Sharma was thankful that his claim couldproof of your having a basic cover of Rs. 3 Lacs. It is
be settled by his insurance company.simply that, their cover will pay from the Rs. 3 Lacs
However the same year, he suffered a heart attackand first rupee irrespective of the first Rs. 3 Lacs is
and had to undergo a bypass surgery for Rs. 3 lakhs.covered under insurance or not.
Now, Mr. Sharma was in a fix since the insuranceWhat is Super top up?
company paid only half the amount of charges (beingSuper top up is also like a top up policy the only
the balance amount in his policy), he had to strain hisdifference is that for a top up policy, the expenses
finances to shell out the other half. He realized thenfor a single treatment should be over the threshold
that just having health insurance is not enough,while in a Super top up, the total amount of
having adequate health insurance cover is alsoexpenses in a year needs to go above the threshold
essential.level for the policy to be effective.
Similarly you could also face a tricky situation in caseFor example: In case of Mr. Sharma, a top up of Rs.
the expenses for a hospitalization go beyond your10 lakh will be ineffective as the cost of both his
cover amount or if you have multiple hospitalizationsbypass and his mother's knee replacement is under
in one year. In such a case, in spite of having aRs. 3 lakh. But if Mr. Sharma opts for a super top up,
cover, you will have to shell out money from yoursince the cost of treatment in the year comes to Rs.
pocket.4.5 lakh, the additional Rs. 1.5 lakh will be paid by the
You need additional cover if:company providing the Super top up.
There is no way to know if you have an inadequateThus between Top-up and Super top up, Super top
cover but you certainly need additional cover if oneup is more beneficial for the customer.
or more of the following is true:Now for the details of the policy: There are currently
- You have covered your parents in your familythree companies that provide a top up policy- United
floater policy.India insurance, Bajaj Allianz and Star health. Out of
- You and your spouse are over 50 and are coveredthese only United India insurance has a super top up
in one policy.plan.
- If you are over 45 and have a cover amount lessGeneral conditions of the policy are as follows-
than 3 lakh for individual policy and Rs. 6 lakh for- You can take a Top up plan or a Super top up for
family floater.an individual or as a family floater.
Top-up and Super top-up to your Rescue- There is a waiting period of 4 years for pre-existing
Traditionally the answer to finding yourself anailments cover with all the companies.
additional cover was buying another health insurance- No expense will be covered till 30 days of
policy that will add up to a sufficient amount orbuying health insurance policy.
increasing the Sum Insured under your existing policy.- All expenses should be above the threshold limit for
However the problem was paying for another policyit to be payable.
or increasing the Sum Insured would prove to be too- You can buy a top up policy even if you don't have
expensive. Thus grew the need for a top-up plan.a health insurance policy covering the first level
What is a Top-up Plan?expenses.
Top-up is a policy that provides an additional cover to- Pre and post hospitalization charges will be payable
add to your existing cover in a very economical way.if the claim amount is above the threshold limit for
For example Mr. Sharma can take a Star SuperTop up policies.
surplus top up of Rs. 10 lakh for just Rs. 5700 for hisTo know more about Top- Up your Health Insurance
entire family on a floater basis. This amount is almostPolicy!
equal to his premium for his original cover of Rs. 3