Higher medical inflation pinches the pocket most during emergencies. For instance, the increase in average claimed amount for circulatory diseases, which mainly include cardiac problems and paralytic strokes, has increased by 56.9% 2009-10 compared to 2007-08, as per the Insurance Information Bureau data. The spurt in healthcare expenses is not in your control. If you have to undergo a certain treatment, you have no choice but to foot the bill. Any procedure for critical illness like cancer or organ transplant will cost . 3 lakh in a city. The total cost, which includes medical and hospital expenses, travel costs, lodging and boarding etc, can easily add another . 2-3 lakh to your medical bill. Most private sector insurers offer medical insurance of up to . 10 lakh and most public insurers offer a maximum cover of . 5 lakh. For a higher amount, a policyholder would have to go for multiple policies, which would mean a higher premium outgo. So if you want to lower the premium outgo, go for a top-up plan. Such plans come into play after you have exhausted your health insurance cover.

WHO CAN GO FOR TOP-UPS:

These plans are designed to provide for medical expenses incurred over and above the sum insured for the basic health cover. This could also act as a supplement to an existing insurance plan if the individual is covered by a group mediclaim offered by his or her employer. For example, if an employer offers a medical insurance of . 3 lakh, a customer can top up the plan by going for an additional . 7 lakh using this plan. This . 10 lakh cover would be at least 20% cheaper than going for a single . 10 lakh cover or splitting the same into two polices offered by the same or different insurance company.

DISADVANTAGES:

One of the downsides in the plan is that it can be used to cover only your spouse and children between the age of three months and 18 years. The policyholder's parents cannot be covered. Also, pre-existing disease you cannot avail of the cover during the first four years of continuous coverage offered by the top-up medicare policy.