Super Top up insurance is an extension version of Health insurance. It basically extends the Sum Insured, over and above your existing Health Insurance Sum Insured, that you want to insure your family for. It is usually taken when the existing Health insurance limit is required to be increased. Let us understand with some example.
Some years ago, you already have bought a Health insurance covering your family for a sum insured of Rs. 20 lakh. Now you have realised that, due to medical inflation and increase in aggregate age of the family, there is a need to opt for a higher sum insured of Rs. 50 lakh in place of Rs. 20 lakh. Instead of going for increase in sum insured of your existing Health insurance, you can buy a Super Top up policy of Rs. 30 lakh with a deductible (threshold) limit of Rs. 20 lakh. This will work in same logic as incremental sum insured but will cost you much lesser.
The reason that Super Top up insurance is cheaper because Super Top up insurer would only come in the picture if your hospitalisation cost exceeds the amount of deductible in one particular year. As Insurer is not on the primary risk, they charge lower premium. This is, thus, found to be economical to the customers. Super Top up policy can also be bought without any base Health insurance. i.e. you really don’t need to have base protection, if you are able to afford it.
1. Individuals / Family with lower health insurance coverage limit.
2. Wealthy families who only want to protect themselves from high value hospitalisation costs only.