Both Top Up health insurance and Super Top Up plans are used to maintain high coverage amounts and yet keep the overall premiums low.
There is a very BIG difference in these two and the difference is pretty crucial, so it is best to understand how they work.
Top-up and Super Top-up health insurance plans have a deductible which means it gets triggered only after a certain amount of the overall claim. So suppose you have a base plan of say 2 lakhs and you take a Topup of 3 lakhs above it. So the top up becomes a 5 lakh plan with a deductible of 2 lakhs. The top up plan is effective only after you have consumed this 2 lakhs. Similarly a Super top up plan of 5 lakhs gets effective only after you have consumed the 2 lakhs. The value of the deductible may vary from plan to plan.
So what’s the difference between a Top Up and a Super Top Up health insurance plan?
So suppose you have a base plan of 2 lakhs and a top up plan of 5 lakhs with a deductible of 2 lakhs, effectively having a 5 lakh cover. But mind you in top up health insurance plans you can only get it for a single claim. Suppose you make a claim of 3 lakhs, the 2 lakhs is covered by the base plan and the balance 1 lakh will get covered by the top up plan. But suppose you make a claim of 1 lakh first and then same year you make another claim of 2 lakhs. Your 1 lakh claim will get cleared completely, but your second claim of 2 lakhs will be compensated only to the extent of 1 lakh by the base cover. The top up plan too will not help because only in case one single claim busts the deductible limit.
So that is why a Super Top Up plan can be more effective. Suppose you had a Super top up plan of 5 lakhs with a 2 lakhs deductible. You make your first claim of 1 lakh – no problem as it is taken care of by the base plan itself. Same year you make a claim of another 3 lakhs and it is covered completely – 1 lakh with by the base plan and the remainder by the Super Top Up plan.
