Key idea
A cheap way to buy a large cover: a policy that kicks in only above a threshold you set. It is how people reach high sums without high premiums.
A top-up plan is extra health cover that activates only after your bills cross a chosen deductible. Because it ignores small claims and only handles the large ones, it costs far less than buying the same cover as a base policy.
Top-up vs super top-up
Top-up
- Deductible applies per single claim
- Each hospitalisation must cross it
- Cheaper, but the per-claim reset can bite
Super top-up
- Deductible applies across the whole year
- Total yearly bills count toward it
- Usually the more useful of the two
How people use it
A common structure is a base policy of, say, ₹5 lakh with a super top-up of ₹20 lakh above a ₹5 lakh deductible. The base handles ordinary claims; the top-up stands ready for a large event. Together they can provide ₹25 lakh of cover for a fraction of what a straight ₹25 lakh policy would cost.
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