steps in here and helps the insured deal with expenses beyond that threshold.
Currently, top-up plans available in the market offer a sum insured of anywhere between R50,000 and R15 lakh, with the deductible amount ranging between R30,000 and R5 lakh.
The underlying sum insured will provide full protection, apart from 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.
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