Is It a Right Choice to Buy a Top-up Health Plan with Group Insurance?

Group health insurance is a type of corporate health insurance which is largely bought by employers for their employees under the employee benefit programs or organisations for their members.

Along with providing 360-degree financial protection to the employees during the policy period, group health insurance also offers low premiums as compared to normal health insurance policies.

In short, a group health insurance plan is a perfect tool for retaining employees, keeping them happy and satisfied, and building goodwill in your business.

Economical Rate

Since a group medical insurance policy includes a group of people, it proves to be pocket-friendly. In case the employer buys the policy for his employees, the employees get adequate financial coverage cost-free.

In case the employer only pays a particular percentage of the premium on behalf of the employee, the rest of the premium still remains economical to the employee.

Tax Benefits

Buying group health insurance means that every policyholder is eligible to get tax benefits according to the Income Tax Act, of 1961. If the employer pays the premium for all employees, then his firm will be entitled to a reduction in tax that is to be paid.

If the employee also contributes to the payment of premiums (partially), then he can also avail of a tax deduction of up to ₹25,000.

Coverage for Families

A group medical insurance policy also offers the facility of including your family in the plan, too. By doing so, you will be saved from putting extra effort into buying a separate family floater health insurance plan for your spouse, children, and parents.

There is no doubt that a group health insurance plan is a must-have if you want financial protection in times of need. However, you may remain unsatisfied with the coverage provided in the group insurance contract.

This is where the top-up health plan comes into play. A top-up plan offers additional medical coverage to those who already own a health insurance policy.

A top-up plan proves to be extremely beneficial for those who are a part of group health insurance but want to have more coverage at a low cost.

Combining a top-up plan with your group insurance is an excellent way of getting comprehensive coverage that exceeds the threshold limit of your current group insurance.

So, if you are looking for something that surpasses the financial coverage you already have, a top-up plan is the right choice for you.

There are multiple benefits of choosing a top-up health plan with group insurance, some of them are:

Supplementary Coverage at a Low Price

Rather than buying individual health insurance, it is suggested that you choose a top-up plan as both of these work in the same way but have different charges.

If you are a member of group health insurance and want to have a greater sum insured for unexpected circumstances, buying a top-up plan will provide you with additional financial coverage at a low premium as compared to the premium of a basic health insurance policy.

Cumulative Bonus

It is possible that you did not get the chance to raise a claim in a particular year. In such a situation, a top-up plan will give you a cumulative bonus i.e., your sum insured will be increased with an additional bonus that ranges around 50-100% of your sum insured.

Consumables Benefit

The term “consumables” refers to those medical equipment which can be used once. A hospital bill includes a good amount of consumable charges in it, which in turn, can rapidly raise your treatment costs.

The top-up plan brings the consumables benefit with it, in which, your insurer will cover the cost of consumables used in your treatment.

However, there is a certain limit to the coverage provided which depends on your chosen provider of business insurance in India. For this reason, talk to your insurer about it and then buy a top-up plan.

Several business owners buy group medical insurance to help them have financial support during medical emergencies. There is no doubt that this is the most used technique for keeping employees satisfied and loyal.

However, it may be that even after having group health insurance as a safety net, you may not find the covers provided under your policy enough. It is when Tata AIG's top-up health plan comes as the knight in shining armour.

We, at Tata AIG, offer many unique benefits, such as optional global cover, lifelong renewals, inexpensive premiums, and the facility of cashless claims which ensures that you do not have to pay medical bills out of your pocket.

Explore our plans for business insurance in India to ensure business continuity even in the event of an unforeseen incident.

Is it good to buy top-up health insurance?

Of course yes. A top-up plan is the best alternative to buying a separate individual health insurance plan to get additional coverage for unforeseen events.

The premium charged under this type of plan remains pocket-friendly and the covers provided are extensive and best suited to the needs of those who already have group health insurance.

What is the age limit for top-up health insurance?

The minimum and maximum entry age of top-up health insurance is 91 days and 65 years, respectively.

What is the deductible in top-up health insurance?

The limit to which an insured is liable to pay the healthcare costs is called the deductible. For example- if your top-up plan has a deductible of ₹1 lakh and the healthcare cost is ₹5 lakh.

Then, you will have to pay ₹1 lakh from your pocket and the remaining expenses will be paid by your insurer.