I already have health insurance and want to increase the sum insured. What should I do

In India, medical costs are on a steep increase over the last few years. The prices of new medical technologies and super-specialty equipment are eventually passed on to patients. Today, even a minor surgery that requires hospitalization can lead to a bill of a few lakhs of rupees. If you feel that the sum assured by your current health plan is not adequate, you have two choices to increase the coverage.

• Purchase another Health Plan along with your Existing Plan

You can opt to purchase a new health plan. This way, the total coverage is the total of both sums assured. For example, if the sum assured by your current health policy is Rs. 3 lakhs, you can take another health plan for Rs. 3 lakhs. This way, the total sum assured is Rs. 6 lakhs, thereby increasing your overall coverage.

However, the one major drawback is that taking a new health plan can be expensive, especially if you're older and have pre-existing diseases. This brings us to the next option.

• Opt for a Top-up Health Plan 

A top-up health plan is a type of health insurance policy designed to supplement your primary health plan. It helps you increase your health insurance coverage at affordable premiums.

Here's how top-up health plans work: Let's say you have a basic health plan of Rs. 3 lakhs. You can take a top-up health plan with a sum assured of Rs. 5 lakhs. This brings your total coverage to Rs. 8 lakhs. If the hospital bill is Rs. 3 lakhs, it would be paid from the basic plan. If the hospital bill is Rs. 5 lakhs, Rs. 3 lakhs is borne by the basic plan, and the remaining Rs. 2 lakh is paid by the top-up insurer.

The threshold of Rs. 3 lakhs is known as the deductible, and the top-up plan kicks in only when the claim amount goes beyond the threshold level.

Top-up plans are a great way to enhance your coverage. They are inexpensive because of the deducible (threshold level). The higher the deductible, the lower is the premium of the top-up plan. Additionally, top-up plans do not require medical check-ups for individuals up to the age of 55 years. Whereas, when you take another health plan to supplement your basic cover, you have to undergo the mandatory health check-up if you’re 45 years or older.

Increasing the sum assured in a health plan is easy. Evaluate both the options listed here and choose the right one that suits your pocket.