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Health Insurance vs. Top-up Health Insurance: The Difference

With the rising health-related risks and uncertainties, people have become conscious about their well-being and put in all the efforts to keep up with their health, be it physical exercise, meditation, or maintaining a balanced diet.

However, despite being extra cautious about your health, you might unexpectedly get diagnosed with an acute disease at some point in your life. This might further lead to worries amongst your loved ones. Besides the emotional stress, you and your family might even suffer from financial stress as it might get difficult to arrange such a huge corpus of funds on an urgent basis.

However, you wouldn’t want that, right? So, it is wise to stay covered under a health insurance plan with adequate coverage. Even if you already have a health insurance plan, check its coverage and benefits carefully, and if you feel it’s inadequate, consider expanding its coverage with super top-up health insurance.

Health Insurance vs Top-up Health Insurance

Due to varying financial capacities, it is not possible for everyone to buy comprehensive health insurance as it involves a higher premium amount in comparison to basic health insurance. However, it wouldn’t be wise to stay covered under just a basic health insurance plan as it offers limited coverage, and you might have to pay out of your pocket during medical emergencies. This is where super top-up health insurance or top-up health insurance comes into play.

You can buy a top-up health insurance plan along with your basic health insurance plan for availing of wider coverage at a reasonable amount. When you opt for a basic top-up plan, the deductible is usually applied on a per claim basis or single hospitalization, i.e., above the deductible limit, the plan covers a single claim. In simpler words, it means the deductible is separately applied to each health insurance claim. This way, if any of your hospitalization bills do not exceed the applicable deductible limit in a year, the top-up health insurance doesn’t become active.

Usually, top-up or super top-up health insurance plans are helpful when you are either covered under a basic health insurance plan or group health insurance plan, which is offered by your employer. For even wider coverage, you can opt for a super top-up health insurance plan. Let’s understand the difference between a top-up and a super top-up health insurance plan.

Benefits of Super Top-up Health Insurance

Super top-up health insurance policies are essential since they give coverage when your standard health insurance policy’s claims have been exhausted. However, this isn’t the only reason you should opt for this plan. Here are some benefits of super top-up health insurance that make it a valuable addition to your financial plan:

1. One-time Payment of Deductibles

Unlike regular health insurance plans that make you pay deductibles against every claim, super top-up health insurance allows you to make the deductible payment once and claim it multiple times during the policy period.

2. Cashless Claims

You can get hassle-free treatment at one of the insurance provider’s network hospitals without having to pay the medical bills upfront with the cashless claim facility.

3. Extensive Health Cover

Your coverage amount will be increased so you never have to compromise on healthcare due to financial difficulties.

4. Life Long Renewals

Some insurance providers also offer life-long renewal with their super top-up health insurance.

5. Tax Savings

You can get a tax deduction of up to INR 75,000 for premiums paid toward health insurance policies for yourself, your spouse, your children, and your parents over the age of 60 under Section 80D of the Income Tax Act, 1961.

It is preferable to buy super top-up health insurance from reliable insurers like tataaig.com. They offer exceptional benefits, 24*7 customer support, and have a competent claim settlement ratio, making them one of the top insurance providers of India.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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