Extra lifeline

Feb 07 2014, 12:00 IST
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A top-up plan can help you deal with rising medical expenses at much lower costs. A top-up plan can help you deal with rising medical expenses at much lower costs.
SummaryA top-up plan can help you deal with rising medical expenses at much lower costs.

the deductible amount, which is covered by a normal health cover policy or through any other relevant source. Had Kumar gone for a top-up cover, the policy would have kicked in after the R3 lakh limit was exhausted.

Advantages

An obvious advantage of a top-up is that it is cheaper than a normal health insurance policy, but only till the deductible amount is higher. It is the most affordable means of extending the health cover, through a perfect combination of a basic policy and an ideal medical top-up.

The second advantage is the ease of purchase. There are no absolute restrictions regarding the choice of companies for getting a top-up health cover. One is free to buy a top-up plan from a company other than the basic health insurance provider, without any fear of termination of the insurance contract, or any other consequences. Third, a top-up plan is available in two distinct versions — individual cover and family floater— and is eligible for deduction under Section 80D of Income-Tax Act.

The writer is CEO. BankBazaar.com

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