Have you ever ordered a pizza and been asked if you want extra toppings? Just like those add-ons enhance your pizza, top-up health insurance boosts your existing health policy. In today’s world of rising healthcare costs, this extra layer of protection is becoming increasingly crucial.
The Rising Tide of Medical Expenses
Healthcare costs are skyrocketing, especially in the wake of the recent pandemic. Consequently, a standard mediclaim policy might fall short when you need it most. This is where top-up health insurance steps in, offering additional coverage without breaking the bank.
How Top-Up Plans Work: Bridging the Gap
Let’s break it down with a simple example:
Your base health policy covers ₹10 lakhs
A major surgery costs ₹16 lakhs
Without a top-up, you’re left with a ₹6 lakh bill
However, with a top-up plan, you’re fully covered. Once your base policy is exhausted, the top-up kicks in to handle the remaining expenses. Therefore, you avoid dipping into your savings for unexpected medical costs.
Key Benefits of Top-Up Health Insurance
1. Budget-Friendly Premiums
Top-up plans offer significant coverage increases without the hefty price tag of a new comprehensive policy. As a result, you get more protection for less money.
2. Comprehensive Coverage
These plans typically cover a wide range of expenses, including:
Pre and post-hospitalization costs
Day-care treatments
Doctor’s fees
Other hospital-related expenses
3. Tax Advantages
Moreover, premiums paid for top-up plans are eligible for tax deductions under Section 80D of the Income Tax Act. Thus, you save on taxes while safeguarding your health.
Who Needs Top-Up Health Insurance?
Families with elderly members can benefit greatly from top-up plans. This is because older individuals are more likely to face frequent hospitalizations or chronic conditions. Nevertheless, anyone looking for extra peace of mind should consider this option.
Staying Ahead of Medical Inflation
In conclusion, as medical costs continue to rise, relying solely on a basic health policy can leave you financially vulnerable. Top-up health insurance offers a cost-effective solution to this problem. By adding this extra layer of protection, you’re taking a small step that can make a big difference in your financial security.
Remember, when it comes to health coverage, it’s always better to have a little extra than not enough. Therefore, consider enhancing your financial portfolio with a top-up plan today. Your future self will thank you for this prudent decision.
Kapil Jain is the Director of Enrichwise Financial Services and Enrichwise Insurance Broking Services, an IIM Indore Gold Medalist in Finance and an investor for 25+ years.
For Tax Advisory, Insurance and Investments – contact +919821860804 or email planner@enrichwise.com