Super Top-Up vs Top-Up Health Insurance Plans – Know The Difference

Health insurance is a must-have investment in an age where medical treatment costs are soaring high. Skipping it can not only drain your financial resources but also bring about mental stress to fund medical emergencies. Hence, it is crucial to not overlook the importance of health insurance in a post-pandemic world. Selecting a health insurance policy requires you to consider several factors such as the beneficiary’s age, policy features, terms of the plan, and the policy’s sum assured. While a plan with a smaller sum assured may provide basic insurance coverage, it may not be suitable in the long run considering the rising treatment costs. But it helps to keep the premiums at an affordable level. If you already have an insurance policy with a sum assured that has started to feel insufficient, you can load it with a top-up cover. These covers are available in two types—a standard top-up plan and a super top-up plan. Let’s look at each of these two types of health insurance covers and the differences therein.

What is Top-up Health Insurance?

Top-up cover in a health insurance policy is an additional insurance cover that helps to provide coverage in addition to the based insurance plan. Instead of buying a new policy with a higher sum assured, a top-up cover can be used to enhance the policy’s sum assured. A top-up plan can also be bought as a standalone insurance plan but is best combined when used with a base insurance policy. Such a base policy can be any insurance plan, i.e. an individual cover, a family floater plan, a group insurance policy, etc. While it is difficult to estimate the future treatment cost of ailments when buying a health insurance policy, a top-up cover serves as an effective way to ensure the coverage is never insufficient. This top-up cover is also known as a catastrophe policy since it comes into the picture only after a specified threshold is crossed. The threshold in the top-up cover is known as the deductible of the top-up cover. Hence, before the top-up cover kicks in, the deductible must be paid by you, the policyholder.

Top-Up Plan vs Super Top-Up Plan in Health Insurance

Aspect	Top-up Health Insurance	Super Top-up Health Insurance
Purpose	Provides additional coverage  when a single claim exceeds the threshold.	Covers expenses when the cumulative total of  multiple claims exceeds the threshold.
Coverage Trigger	Activated by a single claim surpassing the threshold limit.	Activated when the total amount of all claims combined  exceeds the threshold.
Threshold Limit	Applies to each individual claim separately.	Applies to the aggregate of all claims during the policy period.
Claim Management	Only the claim that crosses the threshold is covered.	Multiple claims combined can trigger coverage once  the threshold is surpassed.
Premium Cost	Generally higher due to narrower coverage limits.	Usually lower as it covers a broader  range of claims cumulatively.
Financial Protection	Protects large, single medical expenses.	Protects large expenses spread across multiple claims.

What is a Deductible in Top-up/Super Top-up health insurance?

In health insurance, a deductible is the amount you must pay out of your pocket before your insurer starts covering the costs. This deductible is usually higher than in standard plans for top-up or super top-up health insurance plans. It acts as an additional layer of protection beyond your basic policy. You pay this deductible first, and once it’s covered, the top-up plan comes in to help with extra medical expenses.

How to Choose Between Super Top-up and Top-up Health Insurance?

Here are certain factors to consider when choosing the best super top-up health insurance: Consider your existing health insurance coverage: If your base plan has a low sum insured, a super top-up plan can provide additional coverage by considering all claims within the year, offering better protection. Budget: Top-up plans are often more affordable because the deductible you pay first reduces the overall premium, making it a budget-friendly option. Claim history: If you frequently make smaller claims, a top-up plan may be adequate. It can handle these frequent costs while offering extended coverage for larger expenses.

What are Super Top-up Plans?

Super top-up covers are an extension of top-up insurance plans. Where a top-up policy is applicable for a single claim, a super top-up plan is available for multiple claims in aggregate. Only when the entire sum assured of the super top-up policy is exhausted, is the coverage under such a policy ends.

Example to Simplify the Differences Between the Two

Say, you have a policy of ₹5 lakh coverage that you bought 6 years ago. Considering the present treatment costs, you buy an additional top-up cover of ₹12 lakh with ₹5 lakh of a deductible component. Assume that multiple claims are made in a year of ₹4 lakh and ₹3 lakh, and the treatment aggregates to ₹7 lakh in a policy period. Only the base insurance policy will pay the compensation and no claim shall be awarded by the top-up cover since each claim is below the threshold of ₹5 lakh. The same claims in the case of a super top-up plan will be paid to the tune of ₹2 lakh as the base threshold is crossed and the super top-up policy’s coverage kicks in. So, now that you understand what is health insurance and how you can use the different types of top-up plans to secure the health of you and your dependents, make a smart choice of insurance cover and the top-up policies.

FAQs

What is the disadvantage of top-up in health insurance?

The deductible in a top-up plan can be a disadvantage if you have a single hospitalization with a claim amount exceeding the base plan sum insured but falling short of the deductible.

Can I buy only super top-up health insurance?

No, you cannot purchase a super top-up plan without a base health insurance policy. Super top-up plans act as an additional layer on top of your existing coverage.

What is the benefit of super top-up health insurance?

Best super top-up health insurance offers wider coverage as they consider all your claims throughout the policy year, not just a single hospitalization event. This is beneficial if you anticipate multiple claims or have a high deductible on your base plan.

Why is top-up health insurance cheaper?

Top-up plans are cheaper than super top-up plans because the deductible acts as a filter, reducing the number of claims the insurer needs to pay.   * Standard T&C Apply *Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.