Life is a long and unpredictable journey! Apart from everything good in store, it can even take sudden and fatal turns at any time that can hurt you physically and financially. Moreover, the difficult lifestyle attributed to extremes such as junk food, stress, lack of physical activity and sleep, has made health care one of the major concerns. And if you’re not well prepared for any medical emergency, the cost of treatment and skyrocketing drug prices can wreak havoc on your family’s budget.
According to a recent report by Motilal Oswal Financial Services, among Asian countries in 2021, India had the highest medical inflation rate of 14%, followed by China (12%), Indonesia (10% ), Vietnam (10%) and the Philippines (9%). This is a wake-up call for anyone who has not yet taken out health insurance or who is underinsured. Considering the rising cost of medical care in India, health insurance has become a basic need. Health insurance is your surest safety net that protects you against financial crises in case you or your family members are hospitalized.
Following the great awareness around health insurance, although the health insurance market in India is growing at a very fast pace, there is still a lot of confusion among the buyers. While many purchase health insurance without an adequate sum insured, many even believe that employer-provided health insurance is sufficient to cover unexpected medical expenses.
According to a recent report, most Indians are the least prepared for any medical emergency. Sometimes the amount of health coverage may be insufficient and it may be necessary to borrow from friends, colleagues or take out a personal loan to pay hospital bills. Therefore, to ensure that the hospital bills are paid in full by the insurer despite the fact that your basic health insurance plan does not meet the hospital bill amount, you must have a Super Top plan -Up.
How does a Super Top-Up plan work?
A Super Supplementary health insurance plan covers cumulative medical expenses incurred after exceeding the deductible ceiling. The deductible limit is the threshold amount that the insured pays out of pocket or is paid from the basic health insurance policy. Top-Up plans are also available from health insurance companies, but they are different from Super Top-Up plans. Under a Supplemental Plan, coverage is for a single claim above the threshold limit (Basic Sum Insured), while under a Super Supplemental Plan, coverage is for the total of all hospital bills above the limit threshold.
How do I buy a Super Top-Up package?
A Super Top-Up policy can be purchased with or without a base policy. One can choose to cover the whole family under a single plan, ie on a floating family basis or on an individual basis. You can buy a top-up super from your existing insurer or even choose to get it from any other insurance company. While opting for ST, one should carefully decide on the deductible amount. The policyholder can choose to pay the deductible amount either through his basic policy or out of his own pocket. Super Top-up will pay in addition to the deductible.
After the rise of Covid, hospital charges skyrocketed in India. In several cases, medical costs for patients have reached up to Rs 1 crore. Due to this rise in inflation, a super supplemental plan has become a great way to keep medical bills from affecting one’s financial stability. A super supplemental health plan is a great way to extend the coverage of a basic health plan. The purpose of a super supplemental plan is to ensure that you will never run out of medical coverage. Thus, it allows you to make multiple medical claims by paying only once. Therefore, a super supplemental health plan is a great way to extend the coverage of a basic health plan.
(By Sanjiv Bajaj, Jt. Chairman & MD, Bajaj Capital)