Bangalore: Say you are on a road trip and a tyre of your car gets punctured. Thinking that the existing ones will be enough for the journey, you do not keep the spare tyre. Same is the case with your health insurance plans. You never know if the existing plan will be enough to cover all your medical expenses in a crisis situation, in such situations top up health insurance plans work as a hoist.

How Top-Up Is Beneficial?

A normal policy compensates hospital bills up to the sum covered while a top-up plan covers expenditures after a certain brink is reached. To phrase it in simple words, if your hospital bill extends the sum covered by your insurance plan, a top up policy will cover up the extra amount.

For example if you have an insurance plan that covers up to 4 lakhs and the medical bill is 8 lakhs, you can clam 4 lakhs from your insurer and the rest instead of paying from your pocket the top up insurance plan will cover for you.

Also Read:

8 Most Frugal Billionaires of All Time

Best Stocks to Buy in 2013