Top-up Health Insurance Premium Calculator -How to Use & its Benefits
Are you looking to compare top-up health insurance policies online? A top-up health insurance premium calculator can help with this.
It is an online tool that helps you know how much premium you need to pay for a particular cover. This tool is featured on the websites of insurance providers so that you calculate the insurance premium of your top-up health insurance policy.
It considers various factors like your age, policy tenure, cover amount and resident city. By using this tool, you can pick the right insurance policy that provides all the benefits you need from your health plan.
How to Use a Top-up Health Insurance Calculator?
Follow these simple steps to find out the insurance premium:
- Visit the official website of the insurance company and navigate to the landing page of the premium calculator.
- Click on the number of people who want to be insured
- Enter the necessary details, including the sum insured, age, chosen add-ons etc.
- Click on the ‘Calculate’ button.
Benefits of Using Top-up Health Insurance Premium Calculator
- It becomes much easier to plan your finances if you know the tentative health insurance premium. You can know exactly what part of your monthly expenses you need to set aside to keep your insurance active.
- You can adjust various parameters like the number of insured members, coverage amount, add-on benefits etc., to find the right policy.
- This tool gives you the independence to buy the right insurance policy without the need for an insurance agent.
- Calculating the insurance premium is an extremely complex task, given the number of parameters that go into it. Hence, it becomes necessary to use an online top-up health insurance premium calculator.
How is the Insurance Premium of a Top-up Health Insurance Policy Calculated?
The following factors play an important role in determining the premium of your top-up health insurance policy:
- Entry Age: Insurance premium increases with the age of the insured person. The premiums are highest for senior citizens as they are more prone to conditions like cardiovascular diseases, kidney disorders etc.
- Medical History: Some insurers require pre-medical screening to determine the insurance premium. Others check parameters like your current health conditions and lifestyle-related habits to determine the premium.
- Medical Underwriting: Insurance companies underwrite the terms and conditions in such a way that their risks are balanced. This keeps them from making losses.
- Marketing and Administrative Expenses: Insurers have to pay a range of expenses towards marketing and administrators, which they recover from the premiums paid by policyholders.
- No Claim Bonus: Every year you do not claim your insurance policy, you will get an additional discount on the premium.
- Lifestyle: Individuals who smoke and drink frequently will have to pay an extra premium.
- Policy Term: Insurers provide discounts for their long-term customers.
Also Read
Ways to Reduce the Premium of Your Top-up Health Insurance
1. Get a Family Floater Policy
You can get a top-up insurance plan to cover your whole family with the same sum insured. In most cases, insurers provide discounts for such family floater plans.
2. Choose Higher Deductibles
A deductible is the portion of the claim amount that the insured person has to pay in order to have their insurance policy activated. You can increase the deductible limit to make your top-up health plan cheaper.
3. Choose a Longer Tenure
Some health insurance policies provide multi-year premium payment terms. When you pay premiums for two years or more, insurers provide discounts that can reduce the premiums considerably.
4. No-claims Bonus
Insurers offer a no-claim bonus to policyholders for every year they do not file a claim. With a long-term insurance plan, you can get additional coverage without any increase in the premiums.
Tax Benefits of Top-up Health Insurance Policies
You can claim a tax deduction for the premium paid towards your top-up health insurance plan. As per Section 80D of the Income Tax Act 1969, you can reduce your tax liability by up to Rs. 25,000. You can get this benefit for health insurance policies bought for yourself, your spouse or your children.
If you are over 60 years old, you can get tax benefits of up to Rs. 30,000 in a financial year. Sole earners of a family can get a combined tax exemption of up to Rs. 55,000 in a year if they pay an insurance premium for their spouse, children and parents.
Final Word
The calculation of health insurance policies can be a cumbersome process and can easily lead to mistakes. However, with a top-up health insurance premium calculator, you can easily pick the best plan for you and your family.
If you are looking for a comprehensive health insurance plan, download the Navi app. With Navi, you can get cashless claims in over 10,000 network hospitals, health cover up to Rs.1 crore and more.
FAQs
Ans: A top-up health plan provides coverage above the deductible for a single instance of hospitalisation. A super top-up plan considers multiple instances of medical expenses towards the deductible.
Ans: Top-up plans are a cost-effective way to increase insurance cover over a base policy. You can use your base policy to make a claim till reaching the deductible amount and then use the top-up plan.
Ans: You can pick the deductible amount to be the exact same as the sum insured by your base insurance plan. For example, if your health insurance policy has a sum insured of Rs. 400,000, ensure that the deductible is also Rs. 400,000.
Ans: Top-up health insurance plans cover the following expenses:
• In-patient hospitalisation expenses
• Pre-and-post-hospitalisation expenses
• Daycare procedures
• Domiciliary treatment
• Cost of organ donation
• Ambulance charges for emergencies
Ans: Yes. The following instances are not covered by most insurers:
• Cosmetic surgery not necessitated by injury/burn
• Treatment of self-inflicted injuries
• Sexually transmitted diseases
• Expenses for treating injuries suffered from adventure sports
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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