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super top up query

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27 Oct, 2020 by Bosch

Hello, I have a base family floater policy covering 2 adults and 1 child from a standalone private health insurer covering sum insured of 15 L and another 8 L of accumulated bonus till date. Future bonus will accrue at rate of 10% and will be reduced by same rate in case of claim. Currently I also have a base family floater policy from a PSU insurer covering 10 L amount.

Would like your views on the following steps going forward - I plan to discontinue the family floater policy from a PSU insurer and instead take a super top up from them with 20 L deductible and additional sum insured of 30 L. The premium would reduce to 25% of current premium and coverage would also rise. I cannot opt for the same insurer as the higher deductible option is not offered.

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27 Oct, 2020
Mahavir Chopra

Coverage:

  1. 30L is a good cover you are investing in for the long term. Good call.
  2. As a long term strategy, we would recommend you take a super top-up over your base cover and not your cover including cumulative bonus. This will ensure there is no gap in the coverage at any point in time. The difference shouldn't cost you a lot too.


On selecting the PSU insurer, we would assume you have done your due diligence and compared super top-up options available across board (pricing, service capabilities, responsiveness etc.) and then taken this decision. If not, we would recommend you do that.

Another strategy you can implement is as follows:

  1. Find an insurer which has a good base insurance policy and a good super top-up policy
  2. Buy the super top-up right now from this insurer
  3. Port your base policy well before renewal of your current base insurance policy to the same (super top-up) insurer later.
  4. This way, within two years you would have the base and super top-up of your choice from the same insurance company - this will ensure cashless claims are smoother.


Hope this helps.


Cheers!

Mahavir

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27 Oct, 2020
Bosch
Hello, Thank you for the response. I am struggling to find a super top up product with a high enough deductible to match the offering being offered by the PSU insurer. Essentially what you mentioned in point 1, has not yielded any results so far.
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29 Oct, 2020
Mahavir Chopra

Here's an alternate approach you could explore:

Increase the options you have, by keeping your base cover at 10 Lakhs, and then looking for a 10/30 Lakh Super Top-up. Your options are limited with base cover at 15 Lakhs.


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