If you own a car then it can be assumed that you know the risk that it involves if you drive it without a spare tire. Till the year 1904, the car drivers dreaded the punctured tires. Then, a simple idea given by Thomas Morris Davies of the United Kingdom revolutionized things by helping us understand that having a spare tire will help carry on the drive without being left stranded anywhere.
The top-up health insurance plans like the Star Health Insurance have a similar role to play. They can be viewed as the stepney to your health renewal policy after you exhaust the amount insured limit.
A regular health insurance reimburses medical bills up to the amount insured while a top up one like the Star Health Insurance policy covers prices after a specific threshold is reached.
In other words, when you get admitted to a hospital, the insurer will be the one to pay up to the set amount insured limit. Star Health Insurance top-up plan, on the other hand, will kick in only after a specified sum like 2, 00,000 rupees has been crossed. It can be counted on to pay for the claim amount over and above it.
A Star Health Insurance is an additional coverage for the individuals who have an existing individual policy or a mediclaim from the employer. It is for the reimbursement of expenditure that arises out of one illness beyond the limit of the present cover.
When does it make sense?
Let’s suppose that you have a cover plan for 5, 00,000 rupees but looking at the soaring medical prices, you are aware of the fact that this won’t be enough in a big emergency and you will want to improve it by adding 5, 00,000 rupees.
You can purchase a separate health plan or you can request your insurance provider to upgrade the policy by the mentioned amount. Both of these options are expensive. While the top-up plan of Star Health Insurance will cost only a fraction of that amount.
Therefore, such a plan makes sense when you want to increase the cover without having to pay too much.
It will, however, probably have a big threshold limit, at times as high as the amount insured itself. For example, the super surplus top-up policies from Star Health Insurance have an amount insured and the threshold limit is 5, 00,000 rupees. This means that the policy benefit of 5, 00,000 rupees will only come in once you have already incurred medical costs of the same amount either with your base medical plan or made payments out of your own pocket.
Although it is not obligatory to have a health reimbursement plan to purchase a top-up policy, it is pointless to go for a top-up policy unless you have the repayment cover that is equal to at least the brink boundary of the bought top-up policy.
What is on offer here?
Most of the people confuse health top-ups with add-ons or riders such as critical illness, hospital cash, and personal accident covers, all of which are definite-benefit polices. While the truth is that the Star Health Insurance plans are cover policies and offer the exact perks as the regular reimbursement policy.
The sole difference is that the high deductibles make such plans affordable. The underwriting may differ a bit as the base policy decreases the risk for the insurance provider.
The Star Health Insurance Company provides a wide range of health as well as accident products. Such products are offered individually and also as family floater plans.
The Star Health Insurance plan offers 5% family discount on the premium in case two or more persons are covered under the same plan in the family floater. The dependent kids are covered up to the age of 25. There is an obligatory medical examination if the policyholder or any of the family members are above the age of 45. The pre-existing diseases and illnesses get covered after a waiting period of 48 months. The Star Health Insurance plan also allows 15 days grace period for the payment of the renewal premium.
In case you are not sure as to if or not the Star Health Insurance plan is for you, you can surely judge it by comparing its perks with your existing health insurance plans.
If you think this is a job that is best left to the professionals, then Coverfox is meant for you. Go through their website today and increase your knowledge on the plans you should get.