Top-Up Vs New Health Insurance Policy: Which One Should You Choose?

When it comes to enhancing existing coverage or starting afresh, the dilemma arises: should one opt for a top-up on their current health insurance policy or invest in a completely new approach?

Mark has been renewing his and his wife’s Rs. 10 lakh health insurance policy yearly. He understands this amount might be insufficient due to the ongoing pandemic and rising healthcare costs. He is considering either increasing his coverage to Rs. 25 lakhs or, as suggested by his adviser, purchasing a new Rs. 15 lakh “top-up” cover. Which should he take into account?

Mark has every right to be concerned about the inadequate health coverage that his current policy offers. The Covid crisis has opened our eyes to the fact that the average hospital stay could cost between Rs. 10 and Rs. 15 lakhs. He needs to provide more cover. A top-up health plan offers more affordable coverage for those with a health insurance policy. A health insurance top-up plan would make sense for Mark because it provides the extra coverage he needs at a reasonable price.*

Mark has two options: upgrade his current plan by Rs. 15 lakhs or purchase a new regular health insurance policy with Rs 15 lakhs. Both of these choices, though, turn out to be pricey. On the other hand, a top-up plan for the same amount will be much less expensive. The deductible limit is a factor that influences how much the top-up plan will cost. The top-up plan only becomes active when the cost of a single illness exceeds the predetermined limit specified in the schedule. The top-up plan is more affordable the higher the deductible. The primary policy reduces the insurer’s risk.*

Mark’s primary health insurance policy covers him up to that amount, so he can set the deductible limit at a maximum of Rs. 10 lakh. Top-up health insurance typically only covers hospitalisation for one incident. The top-up plan can only be used if his hospital bill during a single hospitalisation exceeds the deductible. A few programs do not have a single claim cap and allow claims for any illness exceeding the entire year’s deductible. Super top-ups are the name given to these plans.*

Top-up health plans are intended to supplement current policies and pay for actual medical expenses without duplicating coverage while keeping costs in check. Top-up plans ensure enough insurance coverage and that it does not expire when a real need arises.*

Whether to top up an existing health insurance policy or purchase a new one depends on individual circumstances and preferences. Both options have their advantages and considerations. It is essential to carefully evaluate one’s healthcare needs, budget, and existing coverage to make an informed decision. Consulting with a trusted insurance advisor can provide valuable guidance in choosing the ideal option for optimal health coverage. Make sure you always renew your health insurance on time.*

*Standard T&C Apply.

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.

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