Definition
Top-Up Cover
A top-up health cover provides additional sum insured above a fixed deductible, but the deductible applies to each individual hospitalisation claim.
A plain top-up kicks in only when a single claim exceeds the deductible, so several smaller claims that each stay below the threshold get no payout. This per-claim deductible is the crucial difference from a super top-up, where the deductible applies across the year's aggregate claims.
Top-ups are cheap because they cover only large, infrequent events. They suit those with an existing base policy or employer cover equal to the deductible. For most buyers, a super top-up offers better value because real-world claims often come as multiple smaller hospitalisations.
Related terms
- DeductibleA deductible is the amount you must pay yourself before your insurance starts covering a claim.
- Super Top-UpA 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.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.