Planning to buy top-up health insurance? Here are factors to consider

People are topping up their health insurance plans to supplement existing coverage but such a move requires careful consideration of various factors. Let us know the crucial elements that should be in every consumer's mind before purchasing a top-up health plan.

Top-up health insurance policy

 

A top-up is a type of health insurance policy that provides additional coverage for medical expenses at an affordable premium. When the coverage limit of the basic health insurance policy is exhausted, the top-up plan provides additional coverage.

 

Factors to consider before buying a top-up Health Insurance policy

 

Understanding your existing coverage

 

Before exploring top-up options, examine the scope of your health insurance policy’s deductibles, co-pays and coverage limits to identify potential gaps. This assessment will help you determine the specific needs that a top-up plan should address.

 

Coverage amount

 

Top-up plans allow you to decide the coverage amount without any limit. This is useful if you anticipate higher medical expenses in the future.

 

Network of health care providers

 

Many top-up plans have an associated network of health care providers, hospitals, and clinics. Find out of your preferred health care facilities are included in the plan's network to avoid potential inconveniences or additional costs.

 

Waiting periods and pre-existing conditions

 

Insurers often impose waiting periods before certain conditions, particularly for pre-existing medical conditions. Carefully review the policy documents to understand these limitations and determine if they align with your healthcare needs and timeline.

 

Claim settlement process

 

Evaluate the insurer's record and reputation for efficient claim settlement. Look at customer reviews, ratings, and feedback from reliable sources to gauge the company's responsiveness and claims handling process.

 

Tax benefits

 

Top-up health insurance plans offer tax benefits under Section 80D of the Income Tax Act. You are eligible for a tax deduction on premiums paid towards top-up health insurance plans, which can help reduce your taxable income.