Difference Between Top-Up and Super Top-Up Health Plans

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It is important to know the difference between top-up and super top-up health plans before you choose any of them.

We all want health insurance but normally we do not choose more than five lakh rupees as the coverage limit in these cases. Now it goes without saying that in this day and age – especially when you consider the Covid pandemic – you need a coverage limit of at least 20 lakh rupees so that you can pay the heavy bills that are incurred when you are hospitalized.

You can indeed get health insurance policies with coverage of one crore rupees. In such cases, the super top-up and top-up health plans can help you to an extent.

We can assume that you already know top up meaning. Well, in this case, you also need to know that both these types of policies provide similar benefits. Both are used so that you – the policyholder – can get a higher insurance coverage while paying a lower aggregate premium for the same. However, there is indeed a major difference between both. The super top-up plans cover all your hospitalization bills over the threshold limit. On the other hand, a top-up policy would cover only one hospitalization claim over the threshold limit.

The threshold limit in this case is the deductible amount. We can assume that you already know what top up recharge means. Well, if you want to know the difference between these two types of plans before you buy either one of them you are indeed at the correct place.

KNOW MORE: 3 Reasons Why you should compare health insurance plans

The difference between Top-Up and Super Top-Up Health Plans

If you want to know what is super top up health insurance you should know it is health insurance coverage that provides you with coverage over the deductibles or threshold limits.

The top-up health plans serve the same purpose as well. So, as you can see for yourself, there is no difference in terms of meaning. However, the difference between them lies in the fact that the top-up plans will cover only one claim over the deductible limit while a super top-up plan would cover all bills in a policy period as long as they are over the deductible limit. So, this is the major difference between top up and super top up. In a top-up plan, you would have to pay the deductible for each claim, while in a super top-up plan you would have to do so only once in a policy year.

The concept of super top-up and top-up health plans can be better explained with the help of an example. For example, let us assume that your sum insured is 10 lakh rupees with a deductible of two lakh rupees. Now, you make the first claim of five lakh rupees on the policy. Now, you would have to pay the deductible in this case while the remaining amount would be paid by the insurer. Now, let us assume that you raise the second claim in that very year of, say, six lakh rupees.

Now, as per the terms and conditions of your policy, you would have to pay two lakh rupees and the insurer would settle the remaining bill of four lakh rupees. This is how it would pan out if you had a top-up plan. Now, if you had a super top-up plan you would not have to pay a farthing because the insurer would take care of the entire payment. This is one area where the super top-up plans have a major advantage over the top-up plans. So, we can assume that you now know the difference between the top up and super top up plans.

Some other areas of difference between Top-Up and Super Top-Up Health Plans

The premium is much lower in the top-up plans compared to the super top-up plans. In terms of how they work, the top-up plans work on the principle of each hospitalization or each claim while the super top-up plans work on the permit of several claims in a policy period. In terms of the difference in the lapse of claim, a top-up plan lapses after a claim while a super top-up plan lapses when the total premium paid by you has been exhausted.

The role of deductibles in this particular context 

The term deductibles in this context refers to the limit that has been set by the health insurance company from which you have bought the policy. Since you already know what is super top up policy we assume you already know that they are not applicable beyond once a policy year in these policies. The insurers use these as safety nets so that their policyholders do not file trivial and frequent claims. This is basically the amount that a policyholder has to bear in case they make a claim.

The health insurance company would not cover that amount. They would only pay the amount that is not covered by the deductible. The deductible normally varies from one policy to another.

How to choose the right policy? 

Since you already know the difference between top up and super top up we assume now it would be easier for you to choose in this regard. Experts usually say that it is better to go for the super top-up plans in case you suffer from any chronic ailment that needs frequent hospitalization. It also helps that the premiums in these policies are low compared to what you would have to pay if you were buying another health plan that had a higher coverage amount.

A major area of difference between top up and super top up plans is that the latter is more suitable for senior citizens who have to get admitted frequently to hospitals and the like so that they can undergo medical procedures. The super top-up plans with their cumulative coverage are a lot more beneficial over here. In much the same way, if you do not have any terminal or chronic illness a top-up plan should be more than good enough for you. The important thing to do in this case is to look at the terms and conditions of the policy before you choose one.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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