InsuranceFinancial Glossary
Top-Up Plan
Definition
A health insurance plan that covers expenses above a specified deductible threshold. Unlike a super top-up, a regular top-up requires the deductible to be breached in a single claim. If your deductible is Rs 5 lakh, a hospitalization bill of Rs 4 lakh + Rs 3 lakh (two separate claims) would not trigger the top-up.
Why It Matters
The single-claim deductible requirement makes regular top-ups less useful than super top-ups. Most financial planners recommend super top-ups instead. However, top-up plans are slightly cheaper and may work for individuals who are primarily worried about a single catastrophic hospitalization event.