Individual Insurance

Are you covered under the health insurance plan?
Is it adequate enough to cover any unforeseen medical issues?
If not, do not underestimate the importance of top-up health insurance.
A retired official Laxman, 72, is facing a dilemma of giving up his health insurance plan or not. Because of the rising premium rate of insurance every year. From the last 5 years, the insurer is raising the premium at an average rate of 15%. Laxman was not even aware of the specifics of the sudden hike in the premium amount. It’s too much to bear at such an age. Earlier, he wanted to increase the cover but after looking at the pace of premium hike, he dropped the idea.
Many senior citizens like Laxman are struggling to manage the cost of health insurance. However, one can easily keep pace with the rising premium cost and health care cost with the help of top-up health plans.
Senior citizens can reduce the sum insured in their basic health insurance plan (which will decrease the premium amount) and increase the cover via top-up plans.

When to buy a top-up health insurance plan?

One should go for the top-up health insurance plan, if the health insurance coverage provided by the employer is not sufficient enough or when your basic individual health insurance sum insured is not optimum or during an elderly age.
Now, the question arises how much top-up health cover is sufficient?
A rule of thumb is to take cover at least equal to your annual income.

Working of top-up health plans:

The policyholder has to opt for the deductible amount at the time of buying the fresh plan. Higher the deductible, cheaper the premium amount of top-up health plan. It covers one against medical emergency in case of exhaustion of the basic cover. One can avail of top-up benefits only when the limit of the deductible is crossed. The insurer will pay only the cost above the deductible.

Benefits of availing top-up health insurance:

  • The dual benefit of low-cost premium and high sum insured
    Buying a top-up plan is far cheaper than buying a new health cover. These plans increase your sum insured without paying too much. Get advantage of a low premium amount and high sum insured.
  • Coverage available under top-up health Plan
    Top-up health plan covers room rent category, ICU charges, co-pay, pre-hospitalization, post-hospitalization, daycare treatment, PED exclusion, medical checkup, no-claim bonus. You can avail this wider protection at the affordable premium amount.
  • Tax benefit
    Premium paid for top-up health insurance is also eligible for tax deduction under Sec 80 D.

Premium amount of top-up health insurance policy:
Age is the main factor to ascertain the premium amount. Go through the following table and map out the top-up plan premium amount:

Premium Excl. taxes
AgeFamily SizeDeductibleSum InsuredReligareHDFC ErgoBajajICICI LombardMax Bupa
352A+2C3 Lacs10 Lacs58973850620278123288
352A+2C5 Lacs25 Lacs73734400827686532902
351A3 Lacs10 Lacs27281870282228741545
351A5 Lacs25 Lacs35042200372231701395
452A+2C3 Lacs10 Lacs84034400721092365877
452A+2C5 Lacs25 Lacs1125349509707102145141
451A3 Lacs10 Lacs37462200344238922893
451A5 Lacs25 Lacs52142420465742842561
602A3 Lacs10 Lacs145167150115778494
602A5 Lacs25 Lacs207475500156397614
601A3 Lacs10 Lacs938544007241129535943
601A5 Lacs25 Lacs1362536309782129955320
752A3 Lacs10 Lacs32377Above 65 NA1984016626
752A5 Lacs25 Lacs50103Above 65 NA2678614647
751A3 Lacs10 Lacs20064Above 65 NA124102734811233
751A5 Lacs25 Lacs31129Above 65 NA16754325379895

* For Religare, Sum Insured is 9 Lacs instead of 10 Lacs.
* For HDFC, Sum Insured is 12 Lacs instead of 10 Lacs and 20 lacs instead of 25 lacs.
So the next time, if you want to enhance the sum insured of your health insurance, consider buying top-up plan!