Health Insurance

Super Top-Up Vs Top-Up Health Insurance

Considering the alarming medical inflation rate, it is not only essential to have a health insurance coverage, but also having the correct amount of cover. Inadequate health insurance is like carrying a mini umbrella in the rain. Even if you are walking in the rain with an umbrella in your hand, you will not be able to save yourself from the rain. The reason is simple— umbrella is small enough to protect you from the rain!

If you have a health insurance policy, expand the coverage to ensure it is in sync with the current medical costs. You can opt for top-up and super top-up policies and increase your cover.

Most of the people get confused between top-up health insurance and super top-up health insurance. While both the policies help in expanding the cover, they are relatively different from each other. Let’s find it out –

Parameters Top-Up Plan Super Top-Up Plan
Meaning Top-up health insurance plans include those policies which offer an extra cover, provided the threshold limit is crossed. Super Top-Up Plans are similar to top-up plans, except that while top-up plans consider every claim individually to know whether the threshold limit is crossed or not, super top-up plans consider the total sum of all the claims in one policy tenure.
Various Cases
Number of Insurance policies you have Policy 1: A regular health insurance policy with Rs 5 lakh cover Policy 1: A regular health insurance policy with Rs 5 lakh coverage
  Policy 2: A top-up health insurance cover of Rs 10 lakh with a threshold limit of Rs 5 lakh Policy 2: A super top-up cover of Rs 10 lakh with a threshold limit of Rs 5 lakh
Case 1
Only one claim of Rs 6 lakh arises in a year Policy 1 will pay Rs 5 lakh Policy 1 will pay Rs 5 lakh
Policy 2 will pay Rs 1 lakh (as the threshold limit of Rs 5 lakh is crossed) Policy 2 will pay Rs 1 lakh (as the threshold limit of Rs 5 lakh is crossed)
Case 2
Two claims of Rs 3 lakh each Policy 1 will pay Rs 3 lakh for the first claim Policy 1 will pay Rs 3 lakh for the first claim
Policy 1 will pay Rs 2 lakh for the second claim (as it has only Rs 2 lakh remaining after paying the first claim) Policy 1 will pay Rs 2 lakhs for the second claim (as it has only Rs 2 lakh remaining after paying the first claim)
Policy 2 will not settle any bill because no billing amount crosses the threshold limit, which is Rs 5 lakh Policy 2 will pay the remaining Rs 1 lakh (as the total claim amount exceeds the threshold limit, i.e., Rs 3 lakh + Rs 3 lakh –  Rs 6 lakh > Rs 5 lakh i.e., threshold limit)
Case  3
Two different claims of amount Rs 7 lakh and Rs 3 lakh Policy 1 will pay Rs 5 lakh Policy 1 will pay Rs 5 lakhs
Policy 2 will Pay Rs 2 lakh as the bill crosses the threshold limit, i.e., Rs 5 lakh Policy 2 will Pay Rs 2 lakh as the bill crosses the threshold limit i.e., Rs 5 lakh
 As Policy 1 has already exhausted its coverage, nothing will be settled. Similarly, the second claim bill doesn’t cross the threshold limit, therefore, nothing will be paid by the insurer. Policy 2 will pay the second claim amount of Rs 3 lakh as the total claim amount in the year has crossed the threshold limit i.e., 7+3 >5

Which One to Choose?

If you do not suffer from a chronic health condition or run the risk of terminal ailments, a top-up health insurance would be the right option for you. However, if you fear of being hospitalised for more than once a year from chronic disease, it is good to apply for a super top-up plan.

Moreover, both the policies offer the similar tax benefits. Hence, the decision to choose between top-up health insurance and super top-up should be taken on the basis of your health requirements.

Given the rising medical expenses, merely having a medical insurance policy is not enough and you should go an extra mile to save yourself and your family from high hospitalisation costs.

A Word of Caution

Do go through the details of your health insurance policies carefully before choosing the right health insurance company from which you can buy top-up and super top-up policies. Understand the various points related to pre & post hospitalisation expenses, pre-existing ailments, etc.

You can also take the help of SecureNow, a leading insurance advisor which can help you choose the right policy as per your needs. You would only need to submit some details about yourself and SecureNow would generate policy quotes for you which you can compare to find the best policy.

Remember, a little investment into yourself would help you in the long run. After all, there is literally no human being who is completely healthy, and you wouldn’t want life to hit you when your safety gloves are not on.