Top Up Health Insurance

This kind of policies are very popular in now days. It helps persons, who wants to increase the limit of existing health insurance policy but due to the in-ability of insurer because of the limitation of sum insured or other age related factors and guidelines that does not allow them to provide the desired coverage. In this case, a person can move to other insurer or existing insurer's Top Up Health Insurance Plan. This plan provides coverage when the existing policy's sum insured exhausted due to  hospitalization and it crosses the threshold/deductible limit permitted by the Top-Up Plan. 

Suppose, a person have an existing insurance plan of Rs. 5 Lac and He buys a Top-Up Plan of Rs.15 Lac with a threshold/deductible limit of Rs.3 Lac. In case of a claim, if a person borne Rs. 10 Lac due to hospitalization, he can claim up to Rs. 5 Lac in his existing policy and as per top up plan he is entitled to c up to Rs. 7 Lac (Hospital Bill 10 Lac-Threshold Limit Rs.10 Lac) but as he is claiming amount Rs. 5 Lac in existing policy, therefore he can only claim up to Rs. 5 Lac in Top-Up Plan. 

Scenario 2, If claim amount is Rs.20 Lac, then insured can claim up to Rs.5 Lac in Existing Policy and remaining 15 Lac in Top-up Plan. This means, a person can get benefit of up to  the basic+top-up plan limit. 

Also, if a person, does not have basic plan and he buys a top-up plan. He can claim in Top-up plan, once the threshold limit crosses. For example, Hospital Bill Rs.10 Lac, Top Up Plan threshold limit Rs.3 Lac, then insured can get claim up to Rs. 7 lac (Hospital Bill 10 Lac - Threshold Limit 3 lac)  from Top-up Plan.