A Top-up plan (or Super Top-up) is an additional health insurance policy that provides extra coverage beyond the sum insured of your base health insurance plan.
It acts as a backup layer once your main policy limit is exhausted.
🔍 Example
Let’s say:
- You have a base health policy of ₹5 lakh.
- You buy a top-up plan of ₹10 lakh with a deductible of ₹5 lakh.
If your hospitalization bill is ₹8 lakh:
- The first ₹5 lakh is paid by your base health insurance.
- The remaining ₹3 lakh is paid by your top-up plan.
If your bill is ₹4 lakh:
- Your base plan covers the full amount (since it hasn’t crossed the deductible limit of ₹5 lakh).
- The top-up doesn’t apply.
✅ Benefits of a Top-up Plan
- Higher Coverage at Lower Premium
Instead of buying a new policy of ₹15–20 lakh sum insured (which is expensive), you can buy a smaller top-up for less premium. -
Additional Protection Against Medical Inflation
Helps you handle sudden large hospital bills. -
Extends Employer-Provided Cover
If you have a company mediclaim (like ₹3–5 lakh), a top-up helps when you leave the job or in case of large claims. -
Tax Benefits
Premiums paid for top-up plans qualify for deduction under Section 80D of the Income Tax Act.
🧭 How to Use a Top-up Plan
- In Case of Hospitalization:
- File a claim with your base policy first.
- Once the bill exceeds the deductible, submit remaining bills to the top-up insurer.
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For Cashless Claims:
- Some insurers offer direct coordination between base and top-up policies (you may need to inform both insurance companies).
-
If You Don’t Have Base Policy:
- You can still buy a super top-up.
- But during a claim, the insurer will only pay the amount above the deductible (you must bear that deductible yourself).
💡 Pro Tip
A Super Top-up plan is better than a Top-up plan because:
- Super top-up counts multiple hospitalizations in a year towards the deductible.
- Regular top-up counts each hospitalization separately.
👉 Example:
If two hospitalizations are for ₹3 lakh and ₹4 lakh with a ₹5 lakh deductible:
- Top-up: Neither claim qualifies (each < ₹5 lakh).
- Super top-up: Combined is ₹7 lakh → ₹2 lakh paid.
