Super Top Up Policy in Health Insurance
Due to increasing medical and hospitalization costs, and increased lifespan, the health cover you have today may not be sufficient a few years later. It is not economical or efficient to buy multiple health policies due to cost and manageability. The cheapest and efficient way to boost your health cover is by buying a Super Top Up policy.
What are Super Top Up policies?
This policy provides health cover over and above a threshold limit known as ‘deductible’. The health cover kicks in ONLY when the hospitalization expenses are above the deductible mentioned in the policy. The expenses up to the deductible limit can be paid by your own pocket or by a base health insurance policy.
Hence, this policy is referred to as ‘Stepney’ health cover. Because of the deduction, Super Top Up policy premiums are cheaper and also have a higher Sum Insured. These policies are available as individual and family floater policies as well.
Before you submit a claim under a Super Top Up policy, you have to show proof that the medical expenses have exceeded the deductible amount and the bills have been settled.
Read About – Know the difference between Co-pay and Deductible
How do Super Top Up Plans work?
In a Super Top Up Plan, the deductible is calculated as the aggregate of the total cost of all hospitalizations, in a given year. This means that in a given year, the deductible limit has to be exceeded once either by one or multiple cases of hospitalization. All further hospitalization expenses post exhausting the deductible limit are covered by the Super Top Up plan.
Let us consider few scenarios arising for Mr. Nikhil if he has an existing base health cover of Rs.5 lakhs and a Super Top Up policy of Rs.10 lakhs with an Rs.5 lakhs deductible limit.
|Sl. No.||Scenario||How Super Top Up Plan works|
|1.||Nikhil is hospitalized once and the total bill is Rs.8 lakhs||Base health cover will pay Rs.5 lakhs and the Super Top Up policy will reimburse Rs.3 lakhs|
|2.||Nikhil gets hospitalized twice a year. The total hospitalization costs for the first and second instances are Rs.5 lakhs and Rs.3 lakhs respectively.||In the first instance of hospitalization, base health cover will pay Rs.5 lakhs. For the second hospitalization, Super Top Up cover pays Rs.3 lakhs.|
|3||Nikhil gets hospitalized twice a year. The total hospitalization costs for the first and second instances are Rs.6 lakhs and Rs.7 lakhs respectively.||For the first instance, the base health cover pays Rs.5 lakhs, and the Super Top Up policy pays Rs.1 lakh. In the second instance, the base cover does not pay anything as it is exhausted but the Super Top Up plan pays Rs.7 lakhs.|
Before buying a Super Top Up Health Policy, you should always check for the waiting period of pre-existing diseases, coverage for pre-and post-hospitalization expenses, and any other exclusions.
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Important Points about Super Top Up Policy
- Having a base health cover is not mandatory to buy this policy.
- You can buy your base health cover and Super Top Up policy from different insurers.
- Once the base health insurance cover is exhausted or the deductible limit is crossed, you can use your Super Top Up plan to cover all further hospitalizations in a given year.
- Super Top Up policies is not the same as health insurance riders.
- The premiums paid for Super Top Up policies are eligible for tax deduction under Sec 80D of the Income Tax Act.