Example of Top-up cover - An individual is covered for a sum insured of Rs. 3 lacs by his employer. He could opt for a top-up policy of Rs. 10 lacs in excess of Rs. three lacs. If the cost of a single hospitalization is Rs. 5 lacs, the basic policy would cover up to Rs. three lacs only. With the top-up cover, the balance sum of Rs. two lacs would be paid out by the top-up policy.
Top-up policies come cheap and the cost of a single Rs. 10 lacs policy would be far higher than the top-up policy of Rs. 10 lacs with a deductible of Rs 3 Lakhs
In case the top-up plan requires the deductible amount to be crossed at every single event of hospitalization, the plan is known as a Catastrophe based high deductible plan.
Top-up plans that allow the deductible to be crossed post a series of hospitalizations during the policy period are known as Aggregate based high deductible plans or Super top-up cover
Out-patient covers provide for medical expenses like dental treatments, vision care expenses, routine medical examinations and tests etc. that do not require hospitalization
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