Why is top-up health insurance important to your financial planning in 2024? It is important because a medical emergency may easily drain your finances and leave you with stress, as any person who has ever dealt with one will attest. Having adequate health insurance is, hence, crucial. When is your cover enough, though?
You may roughly estimate the covered amount when you get health insurance based on your present physical health and your income level. Over the years, you may have come to understand that you want greater coverage but are unable to afford the extremely high premium a new plan accords. A health insurance top up plan might be a very practical situation.
When this happens, it’s a good idea to get an additional health plan to supplement your current health insurance for an amount comfortable to you. When your primary health insurance policy’s benefits run out, a top-up policy might step in to fill the gap.
What is a top-up health insurance plan?
Top-up health insurance plans are essentially add-ons to an existing plan – it is added to increase the medical coverage. Let us assume for a moment that out-patient consultation is not included in your medical insurance. In such a scenario, add top-up to the current plan can make this an inclusion. In most cases, however, instead of the inclusion, the value of the coverage increases.
Advantages of top-up health insurance plans
Let us see some great advantages of top-up health insurance plans.
- No need for further tests
One great advantage of a top-up plan is that you can get it from your current insurer, thereby eliminating the need for further tests. While this is true for most cases, you must discuss it with the insurance company to understand whether this is applicable for you or not.
- Increase the coverage
As is mentioned above, when you take a top-up insurance the total cover provided to the policy increases. Inflation is rising leading to increase in medical expenses and an increasing your health insurance in 2024 should therefore take priority. Let’s assume you have an individual floater plan of Rs 200000. You opt for a health insurance top up plan 50000. You, as a policyholder, are now insured for up to 250000, allowing yourself to be better prepared in the New Year.
- Pay a lower premium
One of the biggest advantages when planning a top up medical insurance is that you pay a lower premium than what you would pay for a new plan. It’s a smart financial decision for 2024! In case you or a family member is hospitalized, the bills can add up – consultation fees, cost for medicine and test, hospital stay and surgery fees. But, an increased insurance allows you to relax and focus on getting better instead of worrying about how you will pay the bills.
- Cover ancillary expenses
A top-up plan can help you cover ancillary expenses such as ambulance costs, cost of home care nurses and more. Please do remember that you need to read the inclusions carefully to know if these costs are covered or not in the policy or the top-up plan that you are purchasing.
- Coverage for when an ambulance is needed
Top-up insurance protects you financially when ambulance services are needed. This extra insurance can cover bills beyond your basic health insurance, providing peace of mind and financial stability in emergencies.
Two Important things to Keep in Mind While Purchasing a Top-Up Health Plan
- Make sure that inclusions of the top-up plan are different from inclusions of your original policy – avoid duplication.
- Ask your insurance agent to specify the inclusions and exclusions. You need to ensure that the money you are paying for the top-up is beneficial to you.
A top-up health insurance plan should definitely be on your financial plans for 2024. It is a great way to insure yourself against rising medical costs and ensure you are getting the best treatment.