Health insurance is a boon when medical expenses tend to pile up. Everyday a new disease crops into the picture adding on additional and a potential medical expense to your financial savings.
Health Insurance in simple terms is a coverage or Insurance that covers an individual’s medical and varied surgical expenses. In times were the medical expenses are on the rise an health insurance plan would only come in handy to your rescue.
But health insurance would help you in coping up with medical costs up to the sum assured according to the policy. What about the additional set of expenses that follows?
This is where top up insurance plans come to your rescue.
Top up Insurance plan in simple terms is a plan which would provide additional cover over and above the existing health insurance policy.
Top up Insurance plan comes with a simple clause called as deductible. In simple terms deductible is the amount of expenses which will not be covered by the Top up plan. You have to bear this amount of expenses from your own sources or your original policy would cover the expenses. The notion that logically applies here is that lower the deductible amount higher would be the amount of premium.
The major benefit that makes a top up insurance plan attractive is that it is much more cheaper than acquiring a proper health insurance policy. This is mainly because of the clause deductible. The add on benefits that it serves of an individual is that it packs a lower amount of premium and helps in providing aide to various hospitalization costs.
As deductible clause makes top up insurance plans an attractive offer the same deductible clause makes it to the list of drawbacks. Deductible as defined above is basically the initial limited amount that an individual won’t acquire as claim. This makes it difficult for policy holders to find the right balance between the coverage amount and the amount of deductible.
This plan also doesn’t work if an individual is hospitalized multiple times. However in order to cope with this drawback one can acquire a super top up plan.
The crux of utilizing this top up insurance plan to one’s best ability is to find the right balance between ‘deductible’ and also the sum assured.
Experts believe the right balance would be garnering the deductible amount same as sum assured amount under the current existing insurance policy. In this way an individual can smartly use his original health insurance plan to get coverage up to the amount of deductible and use the top up plan in order to meet the additional expenses.
A top up cover insurance plan makes accurate buying sense only when the original health insurance plan would not be sufficient to meet the medical expenses. If you are already in the possession of high amount of health insurance policy it makes no logical sense to pay extra premium in order to acquire a top up insurance plan.
There are various reputed firms offering optimum deals on top up plans but before making any final decision one must invest his time researching regarding his own requirements, benefits and affects of a top up health insurance plan.