Knowledge Base Health Insurance Top-Up Health Insurance
Thursday, 15 November 2012 16:12

Top-Up Health Insurance

Written by  Yashish Dahiya
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Top-Up Health Insurance

A top up health insurance policy is an add-on health insurance policy to extend health insurance coverage. Instead of buying a fresh insurance policy to increase the cover amount, a person can opt for top up health insurance plan. The advantage of this scenario is that it broad cover amount is available at nominal cost. Moreover medical tests are also not required in most cases.


Deductible: This is the amount borne by the insured before which top up health cover amount can be accessed. During claim, only after deductible amount has been paid by insured, top health plan will cover medical expenses. The deductible amount is with every top up health plan. If you opt for higher Sum Assured, higher will be the deductible amount. Some plans also offer the option to choose deductible. More the deductible less will be the premium amount.



  • Inpatient hospitalization due to illness or accident
  • Pre and post hospitalization before and after the illness
  • Day Care Procedures not requiring hospitalization
  • Domiciliary treatment in case medical treatment is availed at home
  • Organ Donor covering expenses for harvesting of organ
  • Emergency Ambulance expenses in case of transportation of insured during emergency

Tax Benefits:

Just like regular health insurance plan, top up health plan premium paid is deductible from taxable income under Section 80D of Income Tax Act.

How do they differ from regular health insurance plan?

A top up health insurance plan is not a replacement of regular health insurance plan. It is in fact enhancement of regular health insurance plan. It extends the coverage. More times than not, hospitalization expenses could be very high and easily exhaust the coverage amount. In such cases, top up health cover can be very useful as it gives access to broad cover at nominal costs.

Top Up Health Insurance Illustration:

Mr. A takes top up health insurance plan with Sum Assured of Rs 5 lacs and deductible of Rs 2 lacs.

- If hospitalization expenses are below Rs 2 lacs, top up health cover amount cannot be used

- If hospitalization expenses are above Rs 2 lacs, then top up health cover amount can be used after deductible amount is used.  Say hospitalization expenses are Rs 5 lacs, then Rs 2 lacs need to be borne by insured and rest of Rs 3 lacs can be utilized from top up health insurance plan.


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