Top-up Health Insurance

If you feel your health insurance policy’s sum insured may not be enough, consider opting for health insurance top-up plans. These plans are more affordable, compared to buying a new policy. Read on to know more.

  1. What is a top-up plan?

A top-up health insurance plan is like any other medical policy, but it pays only after a threshold limit. If you have a health insurance policy with the top-up feature, your insurer will pay for hospitalization expenses but only after you pay the deductible; it is a fixed amount the policyholders have to give from their pocket. Having this restriction makes a top-up health insurance policy less risky for the insurer. Hence, they offer it at an economical cost as compared to a regular health insurance plan.

If you want a health insurance plan as a top-up over your existing policy, a top-up mediclaim will serve as a great cost-effective solution. You will have the freedom to use the base plan up to the threshold amount or deductible value, and utilize the top-up plan to claim cover for any medical bill over it. To benefit from this, ensure that the top-up policy’s deductible is not higher than the base policy’s sum insured. Hence, if the sum insured is INR 5 lakh, the deductible has to be the same or less.

  1. What is a deductible?


If you have a super top-up health insurance policy and file a claim, you are liable to pay a fixed amount first. Your insurance provider pays anything above the pre-determined cost, if required. The amount you have to pay is known as a deductible. You can pay the deductible using the sum insured of any other health insurance policy that you may have. Otherwise, you can make the payment out of your pocket.

  1. How can you choose a top-up health insurance plan according to your budget?

Finding a suitable policy requires planning. Before you decide which plan amongst the various policies like senior citizen health coverage plans, cancer health insurance etc. It is essential to set a budget. Top-up health insurance policies are comparatively cheaper than an individual or family floater plan. You can set your budget according to the existing health policy’s sum insured. This way, you can cover the entire medical bill by utilizing both the health insurance plans.

  1. Does a top-up health insurance plan offer tax deduction?


If you purchase a top-up health insurance policy, it offers a tax deduction. Section 80D of the Income Tax Act, 1961 allows a deduction of up to INR 25,000 on the premium paid. A super top-up plan provides the same benefit.


A top-up health insurance policy is a cost-effective solution if you are looking for an additional plan over your existing one. It offers you an extra cover over your base policy’s sum insured.

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