As all know the importance of health insurance in terms of providing financial security against health emergencies.With rising health care cost health insurance has become an important part of one’s insurance portfolio.But with increasing complexity the need for the amount of health insurance cover and type of cover keep on changing on a regular basis.New forms of physical ailments are on the rise, you never know when a particular health problem which was supposed to a minor disorder can turn epidemic.Like in the case of Dengue , two years back it actually took a epidemic stature and affected many northern states in India.This lead to insurance companies launching Dengue related specific health insurance cover.
The changing scenario discussed above may always force you to look for an higher cover from time to time and which in most of the cases may turn very costly.But if this insurance cover balancing act being done in a smart way can lead to higher savings of money. So let look from the perspective of how can we increase the health cover without raising much cost.Traditionally the health plans which policyholders been buying where base plans, the plan which cover every type of medical emergency and help you manage the whole cost involved during the phase of treatment .The premium of all base family health insurance plans depend primarily on three factors, Number of members who are cover,age of the person being covered and the amount of cover one is looking for it.All these plans also have their sub limits on the percentage of the total cost which would be covered for any specific expense relating to a medical treatment.But with changing conditions most of the policyholders are finding the cover in the base policy less that what is require. The prima facie solution for this is to buy a new policy but which tend to be bit costly because by the time you apply for the next policy you might have already grown older and your insurer might think you more risky while giving you cover.
The challenge is now we need an extra cover but don’t know how to do it at a cheaper rate. This is where top-up health insurance plan comes as a great help.The best part of these types of plan is that they are quite cheaper than buying another base plan for more increasing cover. These plans comes with mandatory deductible which makes them quite cheaper.Take the case of Anand, who already has base plan of Rs.5 lakhs but needed an additional cover of Rs.15 lakh to meet his current requirement.In case he opts for a top-up plan and makes a claim of Rs.7 lakh then the claim of 5 lakh is first raise on the base plan and rest can be covered by the top up. So technically there is a concept of Rs.5 lakh as deductible which makes the top plans as an option of increase health cover which is good and cheap.