Health insurance is crucial for those without lifelong employer coverage due to the soaring costs of medical care, especially for private hospitalisations.
For employees and their families, corporate health insurance programmes are available in the majority of private sector firms. An employee cannot, however, continue to take advantage of such group health insurance in the event of a job change or retirement.
A person would also be at tremendous financial risk if they didn’t have health insurance after retirement when they would need it the most due to ageing. Furthermore, it would be exceedingly challenging to obtain a new individual health insurance policy at that age without any exclusions or loading.
Therefore, unless business health insurance is a lifetime policy, one should also get a personal health insurance policy.
Although there are many other health insurance plans offered by health insurance providers, an employee would likely buy super top-up health insurance since it is more affordable.
As an addition to business health insurance, a top-up plan or super top-up plan may be purchased. For instance, a worker with a company health plan worth Rs. 2 lakhs may choose a personal top-up plan for Rs. 5 lakhs with a Rs. 2 lakh deductible. The employee may use the benefits of Top Up cover to pay the surplus amount if the cost of the treatment exceeds Rs 2 lakh after using the corporate insurance benefits.*
Although practically all health insurance plans have similar fundamental components, they vary in terms of extra benefits and premium costs.
- Cost Benefit
A Super Top Up or Top Up plan is more affordable thanks to the deductible than a health insurance policy without one. Top Up plans are less expensive than Super Top Up plans when comparing the two.
- Conversion Benefit
You can convert a Super Top Up or Top Up plan into a full health insurance policy at age 60 or upon retirement, subject to plan terms and conditions.
A Health Insurance Top Up Plan costs less than a Super Top Up Plan because the deductible for the former applies to each claim, while the latter’s deductible is only once per policy year.
However, in the event of a Super Top-Up plan, Rs. 2 lakh will be subtracted from the expense of the first claim in that particular policy year. The full amount – up to the sum insured – is admissible on the following claims in the same policy year. Every time a claim is submitted under a Top Up Plan, the deductible amount of Rs 2 lakh will be subtracted from the cost of treatment in the case of a Rs 5 lakh cover with a Rs 2 lakh deductible. ^
^ Claims are subject to terms and conditions set forth under general health insurance policy .
*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.