Let's understand what super top-up insurance plans are and how they help the insured
I am a self-employed businessperson. I have a basic health insurance of Rs 4 lakh and a super top-up policy of the same insurance provider of Rs 6 lakh deductible Rs 4 lakh. So now I have Rs 10 lakh of cover for my entire family of three people. Yesterday, I came to know that another company has a super top-up policy of Rs 40 lakh cover deductible of Rs 10 lakh with a very nominal premium. Now I want to know, if I buy this policy, does my cover increase to Rs 50 lakh (4+6+40)? Can I hold two super top-up policies at the same time? - Tanmoy Panja
A top-up health insurance plan provides additional medical coverage on expenses that are above a set deductible.
A deductible is that portion of the claim that is not covered by the insurer and has to be borne by the insured before the benefits of the top-up policy kick in. The insured may or may not necessarily have a basic insurance plan for that purpose.
What are super top-up plans?
Unlike a basic top-up health plan where the deductible is applied on each hospitalisation, there are super top-up plans where the deductible is applied to the total of the medical expenses incurred during the whole year.
Therefore, super top-up plans are more beneficial than top-up plans as the deductible is applied collectively.
There are no restrictions on holding two super top-up insurance policies at the same time.
If for any reason, one wishes to purchase a new super top-up policy for better services or features that their current policy doesn't provide, they are free to do so. In case their medical bill exceeds the amount that is not covered by the original policy, they can use the second policy to cover that expense.
For example, let's say you have a base policy that covers bills up to Rs 2 lakh. You have a super top-up policy of Rs 5 lakh with a deductible of Rs 2 lakh. Now, if you wish to purchase a different super top-up policy of (let's say) Rs 10 lakh with a deductible of Rs 5 lakh, you can do so.
Understand with an example
Suppose your hospital bill was Rs 18 lakh. The base policy covers Rs 2 lakh, and Rs 5 lakh is covered with the first super top-up policy. Now you're left with Rs 11 lakh, out of which Rs 10 lakh will get covered with the second super top-up policy. The remaining Rs 1 lakh have to be borne by you.
Having said that, too many top-up plans can complicate the insurance process. You can choose to have just one super top-up plan in addition to the basic policy unless it makes a meaningful difference in the total premium that you will have to shell out. Moreover, paperwork with three different insurers can be quite daunting. So, keep it simple.
Suggested read: Top up health insurance for increased cover