Many insurers offer super top-up policies at affordable premium rates, making them an accessible option for those looking to increase their coverage without straining their finances
I have a basic health insurance policy with a sum insured of ₹5 lakh. Considering the rising medical costs, I’m worried that this coverage might not be sufficient in case of major health issues. How can I enhance my health insurance coverage without significantly increasing my premium expenses? – Ravi
Health insurance is a vital safeguard against medical emergencies, ensuring financial stability during unforeseen health crises. With medical costs rising steadily, a sum insured of ₹5 lakh may not be enough to cover major hospitalisations, surgeries, or advanced treatments. Given the increasing expenses associated with quality healthcare, having adequate coverage is essential to protect yourself from unexpected financial burdens. Strengthening your policy will ensure you are well-prepared for medical emergencies without straining your finances.
Instead of purchasing an additional policy with a higher sum insured which would significantly increase your premium, you can opt for a super top-up health insurance plan, which can be a cost-effective alternative. A super top-up plan is a health insurance plan that gives you additional coverage above a certain deductible (limit). These plans allow you to enhance your coverage at a lower premium compared to a standalone policy. A super top-up plan works differently from a regular top-up plan. While a top-up plan is triggered only when a single hospitalisation bill exceeds a specified deductible, a super top-up plan considers the cumulative medical expenses incurred in a policy year. Once the total expenses exceed the deductible, the plan kicks in to cover additional costs, regardless of whether they come from one or multiple hospitalisations.
For example, if you have a super top-up plan with a coverage limit of ₹20 lakh and a deductible of ₹2 lakh, the plan will start covering medical expenses once your total hospital bills exceed ₹2 lakh within the policy period. This makes it an excellent option for individuals seeking enhanced protection without a proportional increase in premium costs.
Many insurers offer super top-up policies at affordable premium rates, making them an accessible option for those looking to increase their coverage without straining their finances. These plans typically cover a wide range of medical expenses, including in-patient treatments, pre- and post-hospitalisation costs, day-care procedures, organ donor expenses, and advanced medical treatments. Some policies even offer global coverage and restoration benefits, ensuring continued protection in case of multiple claims.
To make the most of a super top-up plan, it is essential to assess your existing health insurance policy and choose an appropriate deductible that aligns with your financial comfort. A well-selected deductible will help balance affordability and coverage, allowing you to maximise benefits while keeping premium costs in check. Consulting an insurance advisor can further help tailor the plan based on your healthcare needs and budget.
Premium paid for a super top-up policy is tax-deductible under Section 80D of the Income Tax Act. By incorporating a super top-up policy into your health insurance portfolio, you can significantly enhance your coverage without substantially increasing your premiums.
The author is Head, Process Enhancement & Governance (Health LOB), SBI General Insurance
Published on May 3, 2025
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