Should you hold 2 Super top-up Health insurance policies at the same time?

A Super top-up insurance policy provides extended medical coverage in addition to the coverage provided by the basic insurance policy.

Health insurance policies

Every individual purchases a basic insurance policy which provides them with medical coverage up to a certain limit. However, if the expense exceeds that limit, the insured individual will have to pay independently. An individual can purchase a super-top-up insurance policy which provides coverage on expenses more than the amount covered by the basic insurance policy. Let us understand Super top-up insurance policy and its key attributes.

What is a Super Top-up Insurance Policy?

A Super Top-up Insurance policy is a healthcare plan which covers the medical expenses of the insured individual and their family (if opted for) in addition to their basic health insurance. The Super Top-up Insurance policy can be used for subsequent expenses throughout the year once the limit for their basic health insurance is exhausted. If an individual does not have a Super Top-up insurance policy and the limit of their basic health insurance gets exhausted, all medical expenses will have to be paid directly.

Also read: Reasons to get health insurance.

In order to understand how a Super-top Insurance policy works, let us take an example:

If an individual "A" has basic health insurance coverage up to Rs 5 lakhs, then the individual will have to bear any expense above this limit. 

The individual "A" can choose to have a Super-top up Insurance policy providing coverage of Rs 10 lakhs with a deductible of Rs 5 lakhs. A deductible of Rs 5 lakhs means that the policy will provide coverage only when this limit has been exhausted. In case a person holds a basic healthcare policy the deductible limit can be covered by the policy otherwise the amount can be paid by the individual from their own pocket.

Suppose the bill of medical expenses for "A" is Rs 9 lakhs; then Rs 5 lakhs will be paid by the basic health insurance or by the individual himself, while the Super Top-up policy insurance will pay Rs 4 lakhs.

Also read: Top-up vs Super Top-up insurance.

What are the benefits of a Super Top-up Insurance Policy?

Super Top-up insurance policy provides an individual with an opportunity to safeguard their health and their future. A Super Top-up insurance policy has the following advantages:

1. Greater coverage
A Super top-up insurance policy provides extended coverage for the medical expenses of an insured individual. It covers more than the amount covered by the basic healthcare plan. The premium to be paid for a Super top-up policy is low as compared to a basic or a regular healthcare plan. This is because the Super top-up policy can be claimed only after a certain threshold has been reached.

2. Coverage for Covid-19
With Covid-19 spreading worldwide, it is crucial to have coverage for its treatment. Super top-up policies provide coverage to the insured individual for Covid-19.

3. One-time payment for Deductibles
Deductibles under the policy must be paid only once but can be claimed multiple times throughout the year or the policy's term.

4. Easy to Customize
The individual purchasing insurance can make modifications to policy in order to get the most suitable healthcare coverage.

5.Tax saving
Insured individuals can claim tax benefits on the premium paid for the Super top-up insurance policy.

6.Easy to claim
The policy can be purchased online, and the claims can be processed easily.

Can you hold multiple Super Top-up Insurance Policies? 

If an insured person believes that they do not have enough coverage for themselves or their family, they can choose to purchase multiple Super Top-up insurance policies. There are no regulations which prohibit an individual from purchasing multiple policies. The only drawback of holding multiple policies is that getting claims becomes unnecessarily complicated. It is suggested that an individual should purchase only one Super Top-up insurance policy with their basic healthcare plan. Having only one policy allows for smoother processing of claims and less documentation.

Final words

Having a Super top-up insurance policy allows an individual to get extended medical coverage and avoid trouble in an emergency. A basic healthcare plan can only cover limited expenses and can result in a high amount directly paid by the insured individual. Every individual must safeguard their future by investing in such a policy!

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

Understanding health insurance


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