Top-up health plans play an important role when sum assured of an existing health insurance plan is exhausted
Health insurance has become an absolute must as hospitalisation costs rise. If you don't have health insurance, you will have to dip into savings or borrow from friends and relatives. Insurance agents offer health insurance plans of the insurer with whom they are associated. There are chances of the insurance agent not telling you about unique insurance covers which offer excellent coverage.
Top-up health plans
You may take comfort believing that working in the organised sector takes care of medical needs. You may even have an individual health insurance plan, but it could fall short in a serious medical emergency. A combination of a basic health insurance plan and a top-up plan ensures sufficient coverage at affordable premiums. They function as a supplement to your primary health insurance plan.
Top-up health plans have a deductible or threshold limit and a sum assured. You have to select the threshold limit which is the amount up to which your existing health insurance plan can pay the medical bills. The top-up plan kicks in only after your medical bill crosses the threshold limit.
If you have a group health plan or personal health plan of Rs 5 lakh, then opt for a top-up health plan of Rs 10 lakh with a deductible of Rs 5 lakh. On a claim of Rs 7 lakh, the group health plan or personal health plan pays Rs 5 lakh and the top-up health plan settles the rest. With top-up health plans you don't have to break fixed deposits or use money set aside for financial goals.
Top-up health plans play an important role when sum assured of an existing health insurance plan is exhausted.
Super top-up health plans
A top-up Health plan has some drawbacks which are resolved with a super top-up health plan. Top-up plans settle claims only if the threshold limit is breached on a single hospitalisation. Super top-up plans offer coverage over the threshold limit for multiple hospitalisations in the year and a wide range of illnesses.
Insurance for alternative healthcare treatment
Treatments like ayurveda, unani, siddha, homeopathy, naturopathy are alternative healthcare treatments for chronic diseases. They are preferred by many people over western medicine as they are safer and address diseases at the roots. Insurance agents rarely advise availing insurance plans which cover alternative healthcare treatment.
As a result when policyholders opt for alternative treatments, the health insurance does not pay for the claims. Avail health insurance plans which cover alternative treatment after checking the percentage of sum assured, sub-limits and location of treatment. Many insurers cover you only for alternative treatment at government hospitals. Only expenses for actual treatment are covered.
Health insurance riders
Many insurance agents don't tell you about insurance riders. Riders like critical illness rider, hospital cash rider, maternity and new born add-on and personal accident rider are gaining popularity these days.
Critical illness rider - It combines the benefits of a basic health insurance plan and critical illness plan. If you are diagnosed with a critical illness during the policy tenure, the sum assured is paid as a lump sum. You can use the lump sum at your discretion to avail specialised treatment or meet financial obligations. The rider serves as a supplement to an existing health insurance plan.
Hospital cash rider - It pays a fixed amount if you are hospitalised for more than 24 hours. This amount is paid on each day of hospitalisation. The fixed amount doesn't depend on actual costs incurred and may be used for any purpose.
Maternity and new born add-on - You can avail this add-on and cover the new born baby against medical contingencies. The add-on covers maternity expenses, taking this burden off your shoulders.
Personal accident rider - It covers death in accidents and permanent disability. Your health insurance covers accidental injuries and their treatment, but not death in accidents and disablements. This rider offers financial security to your family.
The writer is CEO and Founder of IndianMoney.com
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