Top up health insurance policy

What is top up health insurance policy?

A top-up health insurance is an additional policy to the base standard policy. This policy comes into force only when the hospitalization expenses exceed the threshold limit of the base policy.  This limit is called deductible. A deductible is that portion of the claim amount that is not covered by the insurance company and has to be paid by the insured person/insurance company providing the base cover. For example if the base policy is for Rs 3 lakhs, a top up policy of Rs 10 lakhs means the deductible for the Top up policy is Rs 3 lakhs. In case a hospitalised person claims Rs 10 lakhs, he/she can claim Rs 3 lakhs from base policy and the difference amount of Rs 7 lakhs from top up policy.



Top up policies can be taken as add-on policies with any other health insurance policy. It comes in handy in case higher hospitalization expenses. These policies are affordable due to lower premium compared to standard hospitalization policy. It comes in handy for senior citizens who otherwise have to pay exorbitant premium for additional cover. But it cannot help, if the individual claims are all below the threshold limit.

Comparative analysis

Option 1: If a senior citizen takes a health insurance policy at 61 years age for a cover of Rs 5 lakhs from Apollo, he will have to pay Rs 28,921/- as premium.

Option 2: He can take a health insurance policy cover of Rs 2 lakhs for the which premium will come around to Rs 13,500/-in Apollo  and he can take a top up policy cover of Rs 5 lakhs with deductible amount of Rs 2 lakhs for which premium comes around to Rs 5,704/-. So he will have to pay Rs 19,204/- in aggregate for cover of Rs 5 lakhs.

Hence Option 2 is cheaper than option 1, if the claim amount exceeds Rs 2 lakhs   occasionally.


a. Premium is very low as compared to the traditional health insurance plans.

b. Suitable for those individuals who need higher cover.

c. You can buy top up medical insurance policy in any insurance company, even if your base medical policy insurance is from some other company.

d. It brings income tax benefit on the premium paid as per section 80-D of income tax Act.


a. Some top-up plans may not cover pre- and post-hospitalization expenses.

b. Top-up plans cover only “single incidence hospitalization”.

Comparison of top up policies

Name of the Company

United India

Bajaj Alliance

Star health

ICICI Lombard

Bharti Axa

Apollo munich

Name of product

Super top up

Extra care

Super surplus

Health care plus

High deductible

Optima Plus

Minimum cover

Rs 5 lakhs with Rs 2 L deductible

Rs 10 lakhs with Rs 3 L deductible

Rs 7 lakhs with Rs 3L deductible

Rs 5 lakhs with Rs 2L deductible

Rs 3 lakhs with Rs 1L deductible

Rs 5 lakhs with Rs 5L deductible

Maximum cover

Rs 20 lakhs with Rs 5 L


Rs 15 lakhs with Rs 5 L deductible

Rs10Lakhs with Rs 5L


Rs 10 lakhs with Rs 4 L deductible

Rs10lakhs with Rs3L deductible

Rs 5 lakhs with Rs 1L deductible

Entry age

18-80 years

18-70 years

5-60 years


5-65 years

3m-65 years

Renewal up to

Life time

80 years

75 years

70 years

70 years

Life time

Waiting period for pre-existing illness

 4 continuous year

 4 continuous year

3 continuous year

 4 continuous year

4 continuous year

 2 years

Premium for Rs 10 lakhs sum insured with Rs 3L deductible at  35 years  

Rs 3,199

Rs 2,758

Rs 4,412

Rs 2,206

Rs 1,442

Rs 1,655*

*Rs 1,655/- premium for sum insured Rs 5 lakhs with Rs 2 lakhs deductible 


It’s an important part of your personal insurance portfolio. A fee only certified financial planner can guide you in choosing the right combination of insurance products.  

Last modified on Friday, 16 August 2013 12:05

Prakash Praharaj

Shri Prakash Praharaj has a passion for excellence. He has been awarded two gold medals for securing top positions both in Graduation and Post Graduation in Commerce. He is an MBA with specialization in Finance and marketing. He has been awarded Diploma in Treasury, Investment and Risk Management besides CAIIB from the Indian Institute of Bankers. He is a Certified Financial Planner from the Financial Planning standards Board, India (FPSB), affiliated to FPSB, Denver, USA and Certified Personal Financial Adviser from NISM. He is also a SEBI registered Investment Adviser vide Reg. no. INA 000000045 dated 2nd August 2013.His book "Your Every day guide to Personal Finance and Insurance" has been published by CNBC TV 18 in August 2015.

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