Should One Purchase Health Insurance With Higher Sum Insured Or Add Top-Up Policy?

While selecting a health insurance policy, there are myriad options that you can choose from. These depend on your needs and the amount of coverage you want for your family. You have options like a critical illness cover or a family health plan or even a senior citizens health insurance. The most suitable plan for your family is based on the number of members and their age group.

Your priority will not be a senior citizen health plan when you are celebrating the arrival of a young child. Similarly, among frequently asked questions, one that gets the most attention is whether you should opt for health insurance plans with a higher amount of sum assured or a top-up policy with a lower amount of base policy coverage.

The answer to this is based on what you are looking for when buying a health cover. Let us understand the pros and cons of both options to evaluate better –

Health Insurance with Higher Sum Assured

Health insurance plans with higher sum assured offers more comprehensive coverage to your insurance plan. Be it a family health insurance or an individual, the more extensive the coverage, the better it is. In case you want to insure yourself with your family, opt for a higher amount of sum assured, the premiums for which may be steep. These plans come with a host of different features and benefits included from day one. So whether you need a pre or post hospitalisation cover or even an ambulance facility, all such benefits are preloaded in your health insurance plans. You may take note that these benefits are illustrative and may differ among different plans.

Top-up Health cover with Lower Base Coverage

A top-up health cover, when combined with a standard health insurance policy, can offer all the benefits that you require. The advantage of buying a top-up cover is it stands cheaper than a full-fledged health plan with similar coverage. The key to buying a top-up health policy is you need to thoroughly check for the benefits in each type of top-up add-on so that you get extensive coverage under your insurance plan. The con of a top-up plan is that it has an element of a deductible. A deductible is that portion which the insured has to pay before the cover under the top-up plan kicks in.

After understanding the benefits of each type, what should be your ideal choice?

In case you want a hassle-free buying experience, you can opt for a plan with a higher amount of sum assured. It will ensure you have an insurance cover including the most commonly occurring ailments. On the other hand, if you are sure of the coverage you need, you can opt for a top-up option as & when required.

So if you are someone who can afford higher premiums, you can opt for a plan with higher sum assured. The benefit is you need not look any further for your insurance cover. While a top-up plan is suitable for its scalability as you can increase your cover when required. Make use of a health insurance premium calculator to compute the premiums under both plans. It will help in finding the most suitable plan within your budget.

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