Make the Most of Health Insurance Top-up Plans with These Tips

Health insurance has been gaining immense amount of popularity in India. There are various reasons for investing in health insurance. Once you invest in health insurance, you do not need to worry about the hefty medical expenses in the future. You not only save on the medical bills but also save on taxes while filing your income tax returns.

Health insurance is purchased for a straightforward reason, and that is to keep yourself away from paying for medical costs during unexpected health emergencies. Since more and more people are getting susceptible to diseases and the medical expenses are rising every day, it is essential to buy health insurance right now.

You can purchasea health insurance policy online very easily. It takes less time, hassle-free, and minimum effort. The online health insurance plans makes it easy for you to browse the plans on the go.

Top-up Plans Health Insurance

As the name suggests, top-up plan is an additional coverage attached to your original health insurance policy. Most of the time, it happens that the sum assured of our health insurance is less than the actual expense that was spent during the medical emergency. In such cases, top-up plans come to you as a savior.

There are many reasons to buy a topup health insurance policy. The primary health insurance policy that you invested in provides an assured sum of money. Due to the increasing medical costs, it is possible that the total expense exceeds the assured amount. In such scenarios, the top-up plan works the best. Itprovides additional coverage to low premium rates above the available insured amount.

For example, if Person A has health insurance cover with a total sum of 5 lacs. He duly pays the premium required for claiming the assured amount. He suffered from a severe disease and had to be admitted for treatment. The total expense went up to 8 lacs, which exceeded the total insurance cover by 5 lacs. Now, since Person A did not have an additional cover like a top-up plan, he had to pay the extra 3 lacs from his pocket.

Health Insurance

With increasing medical inflation, it is crucial to own a Top-up health insurance plan in addition to your primary health insurance. You can own the best insurance in the market. The top-up plans will continue to be your savior whenever you are in the need of it.

Here are a few tips to make the best out of the Top-up health insurance plans

  1. Cost Analysis

It is important thatyou calculate the premiums and compare the benefits before buying a top-up plan. You can also consider comparing the premium and benefits of the top-up plans to that of new health insurance. The best way to do cost analysis is by using the health insurance premium calculator. Premium calculator helps you to decide whether the plan complements your needs. The premium amount is displayed based on the type of health insurance you need.

  1. Low Premium Rates

Avail top-up health insurance at low premium rates. But, the premium is based on the deductible amount of the health insurance policy. Higher the deductible amount, lower is the premium rate.

  1. Base policy

A base health insurance policy is not mandatory to own a Top-up plan, but it is always preferable to have one. The base policy should have a sufficient health cover assured amount. This will provide adequate coverage for costs incurred below the deductible amount.

  1. Claim IT deduction

You can claim deductions in your IT returns on investing in top-up plans and super Top-up plans under Section 80D. If the premium covers self, spouse and children, maximum deduction of INR 25000 can be claimed. An additional deduction of INR 25000 can be claimed for a premium contribution that covers parents. If parents are 60 years and older, then a deduction of INR 30000 can be claimed.

Health insurance and health insurance top-up plans are the need of an hour. Investing in such plans will not only help you stay stress free, but also assist you when you are in a medical need. There are many benefits of investing in such plans. You can save on taxes and not worry about the long medical bills of the hospitals. Top-up plans will help you in the same way your base policy does. In addition, it will help you extending the benefits on your base policy. It is always advisable to review the documents of the policy offered by your general insurance provider.