To shield yourself from escalating medical expenses, having the ideal health insurance coverage is crucial. It offers you several health insurance benefits. Securing a high sum insured often means a substantial premium. To address this, consider a top-up online health
insurance plan to manage the premium payments more efficiently.
What Is Top-Up Medical Coverage?
An indemnity-style health insurance policy, known as a top-up plan, comes with a deductible and a coverage amount. If a claim surpasses the deductible cap, the top-up plan covers the excess. For instance, with a deductible of INR 3 lakhs and a coverage of INR 10 lakhs, the top-up policy won’t pay claims below INR 3 lakhs. If your claim is INR 4 lakhs, the top-up plan would reimburse INR 1 lakh. Claims are subject to terms and conditions set forth under the health insurance policy.
Advantages Of Top-Up Plans
The ideal way to broaden your Bajaj Allianz health policy coverage is with top-up plans.
- Because of their affordable premiums, you can increase your health insurance coverage without experiencing financial hardship. Top-up plans are the most economical way to extend your online health insurance ##
- From pre-hospitalization costs to post-hospitalization costs, ambulance fees, daycare treatments, etc., they offer a broad range of coverage. Claims are subject to terms and conditions set forth under the health insurance *
- Expanding the sum insured amount through a top-up plan acts as a cushion against the impact of inflation on healthcare costs. Medical expenses tend to rise over time, and a higher sum insured ensures that your coverage keeps pace with the increasing cost of healthcare services.
- According to Section 80D of the Income Tax Act of 1961, the policy premium paid is eligible for a deduction of up to INR 25,000. The upper limit rises to INR 50,000 for seniors. If you also purchase a plan for your parents, you may deduct up to INR 50,000 from your taxes. **
Types Of Top-Up Plans
There are two types of top-up plans: top-up and super top-up plans. With one major exception, both methods are similar to one another. Each claim instance in top-up plans is compared to the deductible cap. Any claim that exceeds the deductible activates the top-up plan. Claims are subject to terms and conditions set forth under the health insurance policy.
However, a Bajaj Allianz super top-up plan considers total claims made during a single policy year. The excess claim may be paid if the total amount of all claims exceeds the deductible.
Consider purchasing a top-up and super top-up plan with a deductible of 3 lakhs and an insured amount of 10 lakhs each. You have three yearly claims: two lakhs, three lakhs, and four lakhs rupees.
| Claim details | Top-up plan
Sum insured – INR 10 lakhs Deductible – INR 3 lakhs |
Super top-up plan
Sum insured – INR 10 lakhs Deductible – INR 3 lakhs |
| Claim 1 –INR 2 lakhs | Because the claim is less than the deductible limit no claim would be paid | Because the claim is less than the deductible limit no claim would be paid |
| Claim 2 – INR 3 lakhs | Because the claim is equal to the deductible limit no claim would be paid | Aggregate value of claims = INR 2 lakhs + INR 3 lakhs = INR 5 lakhs
Due to fact that the aggregate value exceeds the deductible, claim of INR 2 lakhs would be paid |
| Claim 3 – INR 4 lakhs | A Claim of INR 1 lakh may be paid as it exceeds the deductible of INR 3 lakhs | Due to the fact that the aggregate claims have already exceeded the deductible limit, the full claim of INR 4 lakhs would be paid |
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*Standard T&C Apply
**Tax benefits are subject to change in prevalent tax laws.
##All savings are provided by the insurer as per the IRDAI-approved insurance plan. 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 digitalstudya.
