What is a Top-Up plan?

A top-up health policy is an additional coverage for people who already have health insurance from the employer or have an individual plan. It is like having a Stepney in the car.

Suppose you have a cover of Rs 5 lakh. However, looking at the soaring healthcare costs, you know this won't suffice in a big emergency. You want to enhance it by another Rs 5 lakh.

You can buy a separate health policy (which will cost around Rs 6,000 a year) or request your insurer to upgrade the plan by Rs 5 lakh. Both are expensive options. On the other hand, a top-up plan for Rs 5 lakh will cost just Rs 2,000 a year.

So, a top-up plan makes sense when you want to increase the cover without paying too much.