Maximising Your Coverage: A Guide to Top-Up Health Insurance

Maximising Your Coverage: A Guide to Top-Up Health Insurance

Understanding health insurance options can be challenging. Top-up health insurance is a key option that’s worth considering, especially for those who already have a basic health insurance plan. It ensures that you are adequately protected against unforeseen medical expenses without having to bear a hefty premium.

In this article, we’ll explore how these top-up plans work, why they’re increasingly important in the face of rising medical costs, and the factors you should consider when selecting one. 

How does top-up health insurance work?

Top-up health insurance operates on a simple yet effective principle: it provides additional coverage beyond your existing health insurance plan. Here’s a breakdown of how it works:

  • Deductible concept: The key feature of top-up insurance is the ‘deductible’ – a specified amount that you need to pay (or that needs to be covered by your primary health insurance) before the top-up plan kicks in. For instance, if your top-up plan has a deductible of S$5,000, and your primary health insurance covers up to S$5,000, the top-up plan will cover expenses once the bill exceeds S$5,000.
  • Activation of top-up coverage: Once your medical bills exceed the deductible amount, the top-up insurance gets activated. This means if you incur medical expenses beyond the limit of your base policy, you don’t have to bear the additional costs out-of-pocket as long as they fall under the coverage of your top-up plan.
  • Enhanced coverage at lower costs: One of the most attractive benefits of top-up health insurance is the extended coverage it offers at relatively lower premiums. Since the risk to the insurer starts after the deductible is met, the premiums are generally lower compared to a primary health insurance plan with a similar coverage ceiling.

Purpose of top-up health insurance

In Singapore’s current healthcare landscape, where medical expenses are steadily climbing, top-up health insurance becomes more than just an additional policy — it’s a strategic financial safeguard. According to a report by The Straits Times, a staggering 53% of individuals now see escalating medical costs as a primary concern, potentially derailing their financial planning and long-term savings goals. 

This is where top-up health insurance plays a pivotal role. It’s designed not just as an add-on but as a crucial financial buffer. For instance, consider a situation where you face an unexpected medical need, such as eye surgery, which can be quite expensive. If your base health insurance covers up to S$20,000 but your surgery and associated costs amount to S$35,000, this is where your top-up insurance becomes invaluable. It kicks in to cover the additional S$15,000, bridging the gap left by your primary insurance. 

Purpose of top-up health insurance

This extra layer of coverage proves essential in situations where a single medical emergency, like an eye surgery, could lead to financial strain beyond the limits of standard health policies. Top-up insurance ensures that individuals and families can handle health emergencies without the stress of unmanageable expenses.

Choosing the right top-up health insurance plan

When selecting a top-up health insurance plan, several key factors need to be considered for an optimal choice:

  • Assess current coverage limits: Start by thoroughly reviewing your existing health insurance policy or the employee benefits insurance plan provided by your company. Understand its coverage scope, including what it covers and, more importantly, what it doesn’t.
  • Identify additional coverage needs: Analyse where your primary insurance may be insufficient. This includes looking at gaps in coverage areas and limits.
  • Evaluate personal and family health risks: Consider your personal health, family medical history, and any potential future health risks. This assessment helps in determining the extent of additional coverage you might need.

Investigating various top-up plans available in the market is crucial. Pay close attention to their coverage limits, deductible amounts, premiums, and any exclusions. This careful comparison helps in finding a plan that effectively bridges the gaps in your primary insurance. By methodically analysing these aspects, you can select a top-up health insurance plan that not only complements your existing coverage but also aligns well with your specific health needs and financial situation.

Explore Diot-Siaci Asia’s top-up health insurance options

Top-up health insurance is a strategic and affordable way to fortify your health insurance portfolio. As you consider enhancing your health insurance coverage, Diot-Siaci Asia is here to guide you through the range of options. 

Our team of advisors can help you tailor a plan that aligns with your needs and circumstances, providing you with peace of mind and comprehensive protection. Reach out to us to learn more about how top-up health insurance can work for you and secure your health and financial well-being today.