query about sum insured vs top-up

[ravi79]

Hi all,

I do not understand the game and catch of health insurance companies between offering "sum insured" vs offering amount as "sum insured + super top-up".
e.g., HDFC ergo optima secure gives 2X protection, i.e. for 10L sum insured they give 20L coverage. Then why we do not call it 20L sum insured? Anyway, they are liable to pay that amount if needed. What is the catch here?

Similarly, if a Health company offer 10L Sum insured and then 40L super top-up. Then why this is not called 50L sum insured? Anyhow, company is bound to pay 50L in case it is needed by customer.

In short, what is the difference between 50L Sum insured vs 10L Sum insured + 40L top up? What game insurance companies play behind this?

Thanks

 

[mohan.sic]

Hi all,

I do not understand the game and catch of health insurance companies between offering "sum insured" vs offering amount as "sum insured + super top-up".
e.g., HDFC ergo optima secure gives 2X protection, i.e. for 10L sum insured they give 20L coverage. Then why we do not call it 20L sum insured? Anyway, they are liable to pay that amount if needed. What is the catch here?

Similarly, if a Health company offer 10L Sum insured and then 40L super top-up. Then why this is not called 50L sum insured? Anyhow, company is bound to pay 50L in case it is needed by customer.

In short, what is the difference between 50L Sum insured vs 10L Sum insured + 40L top up? What game insurance companies play behind this?

Thanks

2x - additional 1 x will be activated only if base sum assured claim is completely accepted by company. So the main catch is companies don't accept your base coverage completely so the additional x don't come into picture.

Topup - topup is different. You are paying premium for this topup to get extra coverage. But the premium will be very less on topup compared to premium we pay for base coverage on same sum assured. Reason is simply bcz topup policy will be activated only after base insured bill is completely exhausted. As the odds of such high bills is comparatively less in one year, the topup premiuums are less.

There will be other catches in health insurance acceptance so choose carefully.