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What Is Top Up Health Insurance-Health Policy

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What Is Top Up Health Insurance-Health Policy
What Is Top Up Health Insurance, What Is Top Up Health Policy, Health Insurance, What Is Top Up Health Cover, Top Up Policy

Health insurance is the protective cover that offers the required financial coverage. Medical costs sometime go more than the insured value of your normal health insurance policy and at that time a Top Up Health Insurance stands as an additional cover to your health insurance if your health or medical expenses rises. For ex. in a car we carry extra tyre, why?

What Is Top Up Health Insurance
A top-up health insurance policy is an additional coverage for people who is having an existing health insurance individual plan or a family floater plan. Top Up Health plans comes with high Insurance amount with very low premiums but have a threshold limit like rs 2 lakhs, 3 lakhs etc.

For Example: You have an Mediclaim policy or a Health Insurance Policy for Rs 2 Lakhs and also a Top up Health cover policy for Rupees 8 Lakhs with the threshold limit of Rs 2 Lakhs. If there is a claim of rs 3 lakhs then 2 lakhs amount will be payed by your health policy and the remaining 1 lakh will be covered by your Top up health policy

How Does A Top Up Health Insurance Policy Plan Works
A XYZ person has a Health Insurance Policy for Rs 2 Lakhs and also a Top up policy for Rupees 8 Lakhs with the threshold limit of Rs 2 Lakhs.

Scenario 1 – Single Claim
XYZ had a single claim of Rs 2 Lakhs which will be paid from his Health Insurance Policy

Scenario 2 – Single Claim
XYZ had a single claim of Rs 4 Lakhs in which 2 lakhs will be paid from his Health Insurance Policy and 2 lakhs will be through top-up policy

Scenario 3 – Double Claim, XYZ had two claims in a year.
Claim 1 of Rs 4 Lakhs in which 2 lakhs will be paid from his Health Insurance Policy and 2 lakhs will be through top-up policy
Claim 2 of Rs 1 Lakh will not be paid from his Health Insurance Policy as he already used full amount and top-up policy also will not pay as he had a threshold limit of Rs 2 Lakhs

Scenario 4 – Double Claim, XYZ had two claims in a year.
Claim 1 of Rs 4 Lakhs in which 2 lakhs will be paid from his Health Insurance Policy and 2 lakhs will be through top-up policy
Claim 2 of Rs 3 Lakhs in which 2 lakhs will have to be paid from his pocket and 1 lakh will be paid through top-up policy