Definition
Super Top-Up
A super top-up health policy provides extra cover above a chosen deductible, applying the deductible once across all claims in a policy year rather than per claim.
A super top-up pays once the aggregate of the year's hospitalisation bills crosses the deductible threshold, unlike a plain top-up where the deductible applies to each separate claim. This makes super top-ups far more useful for people with multiple smaller claims.
For example, a base policy plus a high-deductible super top-up is a cost-effective way to build a large total sum insured cheaply, since the super top-up's premium is low because the base cover absorbs initial costs. It is one of the most recommended strategies for affordable high coverage in India.
Related terms
- DeductibleA deductible is the amount you must pay yourself before your insurance starts covering a claim.
- Top-Up CoverA top-up health cover provides additional sum insured above a fixed deductible, but the deductible applies to each individual hospitalisation claim.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.