What Is The Difference Between Top Up And Super Top Up Health Insurance?
Sourav Banik
Author
A top up health insurance is an add-on to the existing health insurance policy, where you can get extra coverage when the existing policy's deductible limit is reached. On the other hand, a super top up health insurance is also an add-on coverage, similar to a top-up, but it covers multiple healthcare expenses cumulatively.
Let’s understand this with a simple example.
Manish Bhatt runs a startup that offers quick medicine consultation for pets across India. After having a successful career run for 12 years, Manish falls victim to a massive cardiac attack. His family checks with his insurance advisor and finds that Manish has bought a health insurance worth ₹8 lakh, with a deductible of ₹60,000.
These are his details:
- Manish’s total healthcare costs: ₹14 lakh
- Base insurance policy: ₹8 lakh
- Deductible limit: ₹60,000
This means Manish will be covered for only ₹8 lakh of his ₹14 lakh healthcare expense, and he will have to pay ₹ 60,000 out of his own pocket. The remaining amount: ₹7,00,000 is still uncovered, as Manish’s health insurance gets exhausted at ₹8 lakh only.
Here comes the role of a top-up health insurance and a super-top up. While a top-up health insurance would cover any expenses after the deductible limit is reached, a super top up will be more useful in case of multiple healthcare expenses. Let’s understand what is super top-up health insurance and top-up insurance below.
What Is Top Up Health Insurance?
A top up health insurance meets healthcare expenses when the primary health insurance coverage is exhausted. You can think of it as your second line of defence against mounting medical expenses. When your primary health insurance coverage is exhausted, the top-up plan steps in to cover additional costs up to its own coverage limit.
Example of Top Up Insurance
Let's say you have a primary health policy of ₹5 lakh with no deductible limit, and you purchase a top up health plan of ₹2 lakh. If you face a medical emergency of ₹6 lakh, your primary policy will cover the first ₹5 lakh. The remaining ₹1 lakh expense will be covered by the ₹2 lakh top-up plan.
Benefits of Top Up Insurance
A top up plan offers multiple benefits when it comes to covering a massive healthcare expense. Here are a few:
Affordable Way For Covering Critical Health Expenses
A top up plan is an affordable way to cover healthcare plans without paying out of your own pocket. Once your base health insurance plan runs out, you have to pay from your own wallet if you don’t have a top up plan
Saves Against High Medical Inflation
A middle income earner in India has too many financial liabilities, and paying for healthcare even after being insured can be financially damaging. A top up health insurance India saves you from paying a fortune on your medical bills when the medical inflation is between 12 - 14% .
Who Should Buy a Top Up Plan?
- If you want to cover additional healthcare costs that are not covered by your group medical plan from your employer
- If you’re looking for a budget healthcare protection without spending too much out of pocket
- If you don’t want to pay high insurance premiums on healthcare plans
Also know how a family floater health insurance works.
What Is Super Top Up Health Insurance?
To understand what is super top up in health insurance, let’s first find out the difference between a super top-up and a top up. In case of a super top up health insurance, you can get coverage for multiple hospitalisation expenses. Unlike regular top-up plans, super top-up plans apply on a cumulative basis throughout the policy year.
Example of Super Top Up Health Insurance
Rajesh has been working as a full-stack developer for a private firm in Hyderabad. His employer has offered him health insurance of ₹10 lakh, with a deductible limit of ₹1 lakh, along with a super top-up plan of ₹5 lakh. During his employment, Rajesh faced hospitalisation three times, which cost him ₹15 lakh.
Rajesh will get health coverage till ₹10 lakh and pay ₹1 lakh out of pocket. But because his health expenses exceed his base policy limit and deductive limit, the super top up health plan will be triggered and will cover his healthcare expenses completely.
However, you can ask why not choose a top up health insurance instead of a super top up plan. The reason is for multiple healthcare expenses, a super top up plan works. If Rajesh had to go with a top up plan, he had to purchase three individual top up plans, which would have cost him more than a super top up.
Benefits of Super Top Up Insurance
A super top-up health insurance is chosen by those who face repeated hospitalisation. Many people purchase this type of plan for their parents, and it is mostly purchased as this type of policy has lower premiums. Let’s look at the main benefits.
Higher Coverage At Low Premium
The premium of a super top-up plan is low compared to a top up, hence a policyholder gets more benefit as they can cover critical expenses at low cost.
Provides Complete Coverage
Another benefit of a super top up is that it provides cumulative coverage for multiple healthcare expenses. People who tend to encounter multiple healthcare expenses in a year save a great margin of healthcare cost by having a super top up plan.
Better Plan Compared To Individual Health Insurance
Having a super top up is more economical than having multiple health insurance policies for different diseases. Super top-up provides a cumulative insurance coverage for repeated hospitalisation in the policy year, which saves more than individual health policies.
Comprehensive Family Protection
Founders and entrepreneurs usually choose a super top-up plan for their families, as they receive cumulative coverage when their base health coverage runs out. For example, if your father undergoes a surgery that costs around ₹5 lakh, and your spouse undergoes a treatment that costs ₹2 lakh, a super top-up is immensely helpful.
Suitable For Modern Lifestyle Diseases
Business leaders and employees often develop lifestyle-related health issues that require frequent hospitalisation. A super top up plan covers the accumulated health expenses throughout the year once the base health policy is exhausted.
Who Should Buy a Super Top Up Plan?
- People who are looking for a health insurance that is economical and covers multiple cases of hospitalisation
- Senior citizens, or people purchasing for senior citizens, who run the risk of multiple hospitalisations
- People with chronic conditions or who are more vulnerable to repeated hospitalisation
Read also if you should buy a super top-up or a critical illness rider.
Main Difference Between Super Top Up And Top Up Health Insurance
Here is a simple illustration to show the major differences to explain what is super top up health insurance is and what is a top-up insurance.
| Factors of difference | Top-up Health Insurance | Super Top-Up Health Insurance |
|---|---|---|
| Definition | Provides coverage for single healthcare claim where the expenses exceed the deductible limit | Provides coverage for multiple healthcare claims where the expenses exceed deductible limit |
| Limit | The policy gets exhausted once the claim exceeds deductible limit | The policy doesn’t get exhausted till the total healthcare expense in a year is satisfied |
| Application | This policy applies only once when the health claim is exhausted | This policy applies multiple times when the base health policy is exhausted |
| Premium | High because it covers a single healthcare when deductible limit is exceeded | Lower compared to top-up as it covers wider claims |
| Deductibles | The deductible applies to individual claims and not every claims | The deductible applies for the total medical claims |
| People who should buy | People or salaried employees that have expensive healthcare with low frequency | Individuals who have multiple healthcare treatments |
| Objective of policy | Aims to cover a single major healthcare expense when base policy limit is exceeded | Aims to cover the total healthcare expenses when base policy limit is exceeded |
What Is Deductible In Top Up Health Insurance?
The deductible essentially determines the amount that an insured needs to pay out of their own pocket before they can claim health insurance. Every insurer sets a certain deductible limit, and it varies across insurers.
How Deductibles Work in Top Up Insurance?
If Vineeta has a base health policy of ₹4 lakh and a top up plan of ₹8 lakh with a deductible of ₹50,000, that means that before Vineeta can claim any health insurance, she needs to pay out of her pocket ₹50,000. It’s only after paying this amount, her top up health insurance will get activated once her health expenses exceed the policy coverage limit.
Another example for this will be you having a health insurance of ₹2 lakh, with a deductible limit of ₹30,000. This means that you can raise a claim of ₹2 lakh for health insurance only after you first pay ₹30,000 from your own pocket. If you have a top up health insurance added, you’ll get covered for any healthcare expense that exceeds the ₹2 lakh limit.
How Deductibles Work in Super Top Up Health Insurance?
When it comes to a super top up plan, the treatment of deductibles changes. In regular top up plans, you pay the deductible for each qualifying claim separately. For example, if you undergo three separate medical events that require ₹3 lakhs each with a ₹2 lakh deductible, you'd pay ₹2 lakh individually for each event that exceeds the deductible. In super top up plans, you pay the deductible only once per policy year, regardless of how many claims you make. All medical expenses accumulate towards this single deductible threshold.
Also understand what is cooling off period in health insurance.
How To Choose The Best Top Up Health Insurance?
If you are looking for comprehensive health coverage temporarily, top up health insurance is a great choice. You can also compare the premiums of different individual health policies with the premiums of a single top up plan, and determine if you should purchase a top up plan. You should buy top-up insurance if:
- You are looking for a low-cost health coverage in addition to your existing health coverage
- You suspect that your deductible limit and healthcare policy are insufficient for any healthcare emergency
How To Choose The Best Super Top Up Health Insurance?
The best way to choose a super top up plan is to first determine your health risks. Individuals who have chronic diseases or are exposed to the risk of multiple hospitalisations, are suitable policyholders to buy a super top-up plan. Note these points before selecting the best super top-up plan:
- You have the risk of a chronic health emergency, and you require frequent hospitalisation
- You have purchased the base health insurance policy for your parents, who need frequent hospitalisation
- You are looking for low-premium health insurance for the long run
Conclusion
We’ve tried to explain in detail what is super top up health insurance, and a top up health plan. Before choosing between top-up and super top-up health insurance, always determine the objectives and the premium amount. For low health risks and temporary health coverage, having a top up plan ensures that your healthcare expenses don’t drain you financially. But if you are looking for comprehensive coverage that will cover all the hospital expenses in a policy period, having a super top-up insurance is immensely valuable.
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Frequently Asked Questions
Explore moreWho is eligible for top up health insurance?
For purchasing a top up health insurance, you need to have an active health insurance. A top up health insurance gets activated only when the healthcare expense exceeds the deductible limit of an active health insurance.
What is the maximum age limit to purchase a top up health insurance?
Most of the health insurance policies limit the maximum age to be 65 years. However, some insurers can waive off the maximum age limit, and may impose a different age limit too. You need to contact your insurer to determine the maximum age limit before buying a top up policy.
How long is the waiting period for super top up insurance benefits?
A super top-up health insurance works as an add-on to the existing health insurance; hence, the waiting period is applicable only for the base health policy and not super top-up separately.
Can I port my super top up insurance?
You can port your super top up insurance to a new policy when you port your base policy to a new insurer. The porting process applies only when your base health insurance is about to renew.
Do you have more questions?
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