What is Deductible in Super Top Up Health Insurance?

With rising medical treatment costs, having a health insurance policy is crucial for individuals and families. While a basic health insurance policy may cover most medical emergencies, it might fall short during multiple hospital visits in a year.

To overcome such a situation, a super top-up health insurance plan comes into the picture. It is a plan that provides additional health benefits beyond your basic health insurance.

However, there are various intricacies associated with this plan; one such parameter is deductible in super top-up health insurance.

Understanding Deductible in Super Top-Up Health Insurance Policy

A deductible in a super top-up health insurance plan is the amount you must pay out of your pocket before your health insurance coverage starts covering your expenses.

In other words, it is a threshold amount you must pay before the super top-up health insurance plan begins covering medical expenses after the base policy is exhausted.

This deductible amount is agreed upon at the time of buying insurance and is pre-specified in the policy documents.

Example of Deductible in Super Top-Up Health Insurance Policy

Let us understand the deductible in super top-up health insurance through an example. Arjun had a base health insurance policy with coverage of ₹5 lakhs. He has also purchased a super top-up health insurance plan with a coverage of ₹10 lakhs and a deductible of ₹2 lakhs.

In May, Arjun unfortunately falls seriously ill and gets hospitalised. The total hospital bill comes to ₹7 lakhs. However, his base health insurance had already been exhausted when he had surgery 3 months before.

In this case:

● Arjun pays ₹2 lakhs, which is the deductible, out of his pocket.

● After the deductible is paid, the super top-up plan will cover the remaining ₹5 lakhs from the total bill of ₹7 lakhs.

So, Arjun ends up paying only ₹2 lakhs, and his super top-up policy takes care of the rest.

Types of Deductible in Super Top-Up Health Insurance

There are two types of deductibles available under the health insurance plan. These deductibles are:

Voluntary Deductibles

A voluntary deductible is the amount the policyholder chooses to pay out of pocket at the time of claim settlement. You can decide on the deductible amount based on your financial ability and sum insured.

Since this type of deductible policy allows you to willingly choose how much to pay for hospitalisation expenses, the insurance provider rewards you by offering a discount on health insurance premiums.

Compulsory Deductibles

A compulsory deductible is a type of deductible amount fixed by the insurance provider. At the time of claim settlement, policyholders are required to pay the agreed-upon amount.

This amount is non-negotiable and must be paid before the insurance provider settles the rest of the claim.

Why Should You Opt for Deductibles in Health Insurance Policy?

Here are some reasons to consider deductibles in a health insurance policy. These reasons are:

Lower Premiums

When you choose a policy with a deductible, the insurance provider takes on less risk, and that usually means lower premium rates for you. This makes it a cost-effective option, especially for those who do not expect frequent hospital visits or claims.

No Claim Bonus Protection

With deductibles in health insurance plans, you are less likely to make small or unnecessary claims. By not claiming the policy tenure, you can preserve the no-claim bonus. This will help you lower your premiums at the time of renewals.

Avoid Policy Lapses

Since premiums are more affordable due to deductibles, it is easier to continue renewing your policy every year. This helps avoid the risk of a lapsed policy, which could leave you without coverage when you need it the most.

Get Adequate Health Coverage with TATA AIG Health Insurance Plan

A deductible in a super top-up health insurance plan plays a vital role in making health insurance affordable. It allows you to enhance your existing health insurance at a lower premium while offering solid protection against high medical expenses.

With reliable providers like TATA AIG’s health insurance plans, you get the flexibility to choose your deductible, fast claim support, lifelong renewal and more. With their reliable and customer-centric approach, you get the best care at the time of need.