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|
|Age||Family Size||Deductible||Sum Insured||Religare||HDFC Ergo||Bajaj||ICICI Lombard||Max Bupa|
|35||2A+2C||3 Lacs||10 Lacs||5897||3850||6202||7812||3288|
|35||2A+2C||5 Lacs||25 Lacs||7373||4400||8276||8653||2902|
|35||1A||3 Lacs||10 Lacs||2728||1870||2822||2874||1545|
|35||1A||5 Lacs||25 Lacs||3504||2200||3722||3170||1395|
|45||2A+2C||3 Lacs||10 Lacs||8403||4400||7210||9236||5877|
|45||2A+2C||5 Lacs||25 Lacs||11253||4950||9707||10214||5141|
|45||1A||3 Lacs||10 Lacs||3746||2200||3442||3892||2893|
|45||1A||5 Lacs||25 Lacs||5214||2420||4657||4284||2561|
|60||2A||3 Lacs||10 Lacs||14516||7150||11577||8494|
|60||2A||5 Lacs||25 Lacs||20747||5500||15639||7614|
|60||1A||3 Lacs||10 Lacs||9385||4400||7241||12953||5943|
|60||1A||5 Lacs||25 Lacs||13625||3630||9782||12995||5320|
|75||2A||3 Lacs||10 Lacs||32377||Above 65 NA||19840||16626|
|75||2A||5 Lacs||25 Lacs||50103||Above 65 NA||26786||14647|
|75||1A||3 Lacs||10 Lacs||20064||Above 65 NA||12410||27348||11233|
|75||1A||5 Lacs||25 Lacs||31129||Above 65 NA||16754||32537||9895|
* 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!