Most of the persons who have a normal medical insurance ignore every suggestion about going for a health insurance top-up plans as they feel that their health insurance policy will cover all kinds of health-related expenses in emergencies. One must always buy health insurance packages for the security of their family and themselves. However, one must be prepared for the unforeseen circumstances also. What to do when the expenses exceed the basic policy amount? In such cases, one can either be helpless or be assured with the amount from a top-up health insurance plan.

However, it would be misleading to treat a top-up health insurance policy as similar to a normal med-claim. One can avail the benefits of a health insurance whenever he falls ill and has to meet the expenses of his treatment. The insurer, in this case, can avail the amount which he has secured through the payment of the premiums earlier. The benefits of a top-up plan, on the other hand, cannot be availed of according to one’s desire. There exists a certain threshold amount, known as the “deductible”, reaching which one will be able to get to avail the amount of the top-up health insurance plan. When going for the top up plan, the insurer has to specifically mention the amount which shall be taken as the limit for getting the benefits of the plan, as otherwise, the policy broker might include amounts which might not be acceptable to the individual.

It is much cheaper to purchase a top-up health insurance policy than going for a second normal one. For example, if the normal policies cost around 20 lakhs, then you can go for a top-up policy of 10 lakhs (where the premium would be as meager as 2500 rupees). One can even cancel the policy when he receives the policy documents.

On purchasing a top-up health insurance plan, one can even help himself in reducing the tax deduction by 20,000 rupees. The top-up plans which act as an extra care of self, for a spouse, children and dependent parents are accepted under the section 80D of the constitution to be accepted for deduction of taxes on income.

It is only in a very few cases that one will be not allowed to buy health insurance of any kind:

• If he is having an illness which is not curable at any time.
• If the purpose ends up to be a dental one. One would not get health insurances or top-ups even if one gets hospitalized.
• For the first 6 years of a child’s life, the insurances are not applicable. One is supposed to bear the costs on their own.
• STD like AIDS, HIV, or similar sexually transmitted diseases, do not come under the health insurance or top up plan coverage.

Apart from these, there aren’t many restrictions and in fact, the conditions of purchasing or claiming Top Up plans remain quite flexible. So, every person who chooses to buy a top-up plan to make himself prepared for any unforeseen medical situation along with a health insurance plan turns out to be the one who helps himself the most in the long run. Bajaj Finserv has many policies which might benefit an individual planning to buy a health insurance or a top-up plan.

This article talks about how health insurance top up plans are beneficial than other insurance alternatives. It discusses how helpful it is to individuals, be it for medical purposes or for tax deductions or even as an extra layer of security.