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Five Advantages Of Top-Up Health Insurance Plan

As we grow up, our roles and responsibilities grow with us. We constantly work hard to achieve our goals in life and make sure our loved ones get to live out their dreams. However, our bodies face the brunt of our hectic schedules and stressful workloads. Consequently, we begin facing health issues that can lead to severe financial dents. While we may have purchased a health insurance policy, what if our health insurance coverage isn’t sufficient to cover our medical bills? Therefore, when you’re trying to understand how does health insurance work?’, you must also learn about the top-up health insurance plan.

What is a top-up health insurance plan?

Your existing medical insurance plan may not include sufficient coverage for meeting high hospitalization bills. For such circumstances, you may need to buy additional insurance policies. However, top-up health insurance can improve the total coverage value and increase the sum insured amount. This means that the insurance company is liable to cover the balanced amount if the base policy’s coverage limit is crossed.

A top-up health insurance plan comes in two types:

  1. Top-up policy: A top-up plan can be used on a ‘per year per claim’ basis. It works when the claim amount is higher than the current health insurance plan’s coverage amount.
  2. Super top-up policy: A super-top plan can help you get medical assistance multiple times in a single year when you have exhausted your base health insurance plan’s coverage.

How does top-up health insurance work?

The primary health insurance plan will cover the medical bills up to the sum insured amount, while top-up health insurance will provide financial assistance once the sum insured has reached its limit. Let’s say you have purchased a health insurance plan with a sum insured of ₹5 lakhs and a top-up health insurance policy of ₹8 lakhs. With this, your total sum insured amount is ₹13 lakhs with a limit of ₹5 lakhs. If your medical bills during an emergency go up to ₹8 lakhs, your insurer would pay the ₹5 lakh from your base insurance plan and the additional ₹3 lakhs from your top-up plan. This way, you get additional coverage apart from your base health insurance benefits.

Benefits Of Top-Up Health Insurance Plan

Opting for a top-up insurance policy can be quite beneficial for you. It helps you lower your expenses, and you can get the treatment you need without worrying about the medical bills. Listed below are a few benefits of purchasing a top-up health insurance plan:

  1. An extensive insurance coverage above your base plan: With a top-up health insurance plan, you get a financial backup if your base policy coverage is exhausted. With a top-up policy included in your base insurance coverage, you can be at peace knowing that even if your medical bills go above your base plan’s limit, you will be financially secure.
  2. High insurance coverage at an affordable premium: Health top-up plans come at an extremely affordable rate. It means that you can get the dual benefit of higher insurance coverage and a low-cost premium. It is highly beneficial for individuals who are a bit old. The chances of dealing with medical issues are higher for older individuals, and a top-up plan for old individuals would be a suitable option.
  3. Helps you fight medical inflation: India’s medical inflation has been on the rise for a few years. Medical inflation has risen quite a lot, and such a rise can impact individuals getting suitable medical treatment for themselves. However, with a top-up health insurance policy, you can deal with medical inflation easily. The top-up health insurance plan will ensure that only your insurer would have to worry about the medical expenses. This way, your financial stress would be reduced extensively.
  4. Tax benefits: Like other insurance policies, you will get tax benefits on the premiums paid towards your top-up health insurance plan. As per section 80D of the Income Tax Act, you can reduce your tax liability up to ₹25,000. This tax benefit applies to insurance policies you have purchased for yourself, your spouse or your children. If you’re a senior citizen, you will get a higher tax benefit up to ₹50,000. This way, health insurance policies can help you lower your tax liability while providing you with coverage simultaneously.
  5. Coverage for pre-existing diseases: Health insurance plans do not offer coverage against pre-existing illnesses. However, you can supplement your base health insurance policy with a top-up that provides coverage for the issue. Inclusion of specific coverage in your insurance policy can be beneficial if you have a family history of specific illnesses.


Top-up health insurance plans are effective ways to ensure you get the medical coverage you need regardless of your base health insurance plan’s limit. If you have exhausted the policy’s sum insured and benefits of health insurance, the top-up health insurance plan will assist you in dealing with the additional health financial assistance you need. With a top-up health insurance plan, you will not have to worry about the rising medical inflation. The top-up health insurance policy also comes with several other benefits.

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