Both top-up and super-top-up plans have long been considered an excellent way to supplement health insurance. Low-cost super top-ups were primarily considered for senior citizens or people with conditions needing frequent hospitalization*. However, in recent years, super top-ups have grown in popularity, with most insurers abandoning top-up plans in favor of super top-ups.
While some insurers provide top-up plans, others only offer super top-ups, and some give both.
Does purchasing these plans make sense for you?
What are super top-ups, and how do they function?
Usually, top-up plans are for a single, catastrophic, high-cost event. In contrast, super top-ups are for getting an extra sum insured for multiple events that may or may not be fatal.
Both plans operate on the premise that a deductible limit must be met for them to be activated. So, if you have a Rs.20 lakh super top-up plan with a Rs.5 lakh deductible limit, you must pay Rs.5 lakh out of your pocket or via a base cover before the super top-up is used. Health top-up plans require exceeding the deductible limit in a single hospitalization*.
In contrast, a super top-up allows you to add multiple hospitalizations* bills to calculate the deductible limit in a policy year.
Super top-up flip side:
It may be the ideal option for expanding your health coverage, but keep the following limitations in mind. Consider whether your base plan includes a restore option. If you have a large base plan for the sum insured fully restored within a policy year, you should reconsider the amount of the super top-up coverage and whether you should buy it. The restoration benefit can quickly provide optimal coverage while being less expensive.
There is no cashless with various insurers:
If you have a base plan from an insurer and a super top-up from another, only the base plan will be considered for cashless reimbursement. If this amount is depleted, you must pay the remaining amount out of pocket and have it reimbursed later. The bill can be produced without cash if the base and super top-up health insurance plans belong to the same insurer.
Regardless of employer coverage, purchase both independently:
If you only have a base plan through your employer, you should not buy a super top-up plan from another or the same insurer. You should purchase another set even if your employer provides a base and top-up. If you change plans and base cover lapses, you will be asked to pay the deductible out of pocket to use the top-up plan.
Only purchase a small base plan:
Most insurers tie benefits such as cumulative bonuses, renewal rewards, and so on to the base health insurance plan rather than the top-up plan. So, if your base cover is too small, the accrued benefits will also be negligible.
- Choose a super top-up plan with similar features and benefits to the base plan, as the latter may need to be more comprehensive.
- Pre-existing disease waiting periods may be more extended.
- Room rent limits may apply.
- Or OPD coverage may be unavailable.
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. ‘
*The insurer provides all savings per the IRDAI-approved insurance plan. Standard T&C apply
