HOW TO TOP-UP YOUR BASIC MEDICLAIM INSURANCE POLICY

1. Due to rising treatment costs, basic mediclaim policy of at least Rs.5 lakh is essential.

2. If a smaller one already exists, buy a top-up plan, preferably from another insurer, instead of buying a new policy.

3. It will give additional coverage at a lower cost after original cover gets exhausted, with individual and family options.

4. Its documentation is less cumbersome because top-up insurer extends that of main policy to top-up plan.

5. Its coverage will, however, start only when hospitalization cost exceeds a threshold limit or a deductible.

6. If a claim arises, main insurer will first pay up to sum assured, and then top-up insurer pays up to top-up plan amount.

7. Top-up insurer is not responsible for any claim amount which falls within sum assured by main insurer.

8. Top-up plan is, therefore, best suited for a person whose mediclaim insurer is not ready to increase his existing cover.