In the last blog, we looked at how to use “deductible” effectively to reduce the insurance premium. Here we are going to look at the difference between Topup and Super topup. The purpose of these health plans is the same. Avail higher coverage while keeping the premium costs lower.
First, how do these health plans achieve lower premiums? Oh yes, as we saw in the previous blog – it’s via deductibles. The higher the deductibles, the lower the premium.
| Feature | Topup | Super Topup |
| Coverage | For each claim above the deductible limit | Cumulative claim above the deductible limit each year. |
| Deductible | Deductible is paid for each claim by the insured | Deductible is paid once a year on a cumulative basis |
Let us look at an example of how topup works for a 5L deductible.
| Hospitalisation | Coverage details |
| 4L hospitalisation charge | 4L < Deductible of 5L, so no coverage |
| 6L hospitalisation charge | 6L – deductible of 5L = 1L is covered by insurance |
| 4L hospitalisation charge | 4L < Deductible of 5L, so no coverage |
Finally, let us look at an example of how super topup works for a 5L deductible.
| Hospitalisation | Coverage details |
| 4L hospitalisation charge | 4L < Deductible of 5L, so no coverage |
| 6L hospitalisation charge | 6L – (5L – 4L previous deductible) = 5L is covered by insurance |
| 4L hospitalisation charge | Entire 4L is covered since cumulative deductible crossed 5L |
Please note that, in case of a super topup – an email notification to the insurer is essential to kick in the cumulative deductible usage.
Use the small policy for first claim and deducible policy for second on. Is my understanding right
If so how can we use two policies for one claim ?
Thats right Arvind.
1) Use the smaller policy till its consumed.
2) Keep the bigger policy provider (super topup) informed that something could potentially come their way.
3) Start consuming the bigger policy depending if its required or not.
This procedure is true whether one hospitalisation is consuming the enter small policy OR if a bigger hospitalisation is consuming the entire coverage.
Good luck to all of us to not needing either 🙂
Thanks … Good info