Why is it important to have a health backup plan?


09 Jun 2023

Ensuring Financial Protection: The Importance of a Health Backup Plan

A comprehensive health insurance plan is very important to curb the rising cost of health and medical check-ups, as it covers nearly everything. However, there are times when the medical cost can surpass the insurance coverage. This is where you need a health backup plan.

Why is it important to buy a health backup plan?

Without a backup plan, unforeseen medical expenses might leave you broke. If you have a job, the group health insurance offered by your employer will cover you and your family. Your coverage will expire after your service is over or if you quit. Having a backup in these situations is beneficial so that you won't have to use up all of your funds in the event of a high medical cost.

Moreover, there is no assurance that your health insurance will cover all your treatment costs; the best way to prepare is to get a backup health insurance plan. Also, you can increase the sum assured amount at the time of renewal.

A health backup plan is better than buying completely new insurance. Here are some features of a backup health insurance plan -

  • A 15-day free look period is offered.

  • It is not compulsory to buy a new health insurance plan to get a backup health plan. You can get it with your existing comprehensive health insurance plan.

  • No need for medical screening up to the age of 55.

  • You can claim the tax benefits under section 80D of the Income Tax Act.

  • It is similar to the regular family floater health insurance plan.

  • The insurance has a one- to two-year term with the option of lifetime renewal.

However, it is not feasible to buy this backup plan with a rider. To buy a rider, you must buy a basic or comprehensive health insurance plan.

What does a top-up (backup) health insurance plan cover?

The inclusions in the backup health plan differ according to the insurer -

  • Organ donor expense coverage.

  • Daycare process coverage

  • Pre-hospitalization costs

  • Pre-hospitalization costs

  • You can avail of the cumulative bonus when renewing the policy.

What are the factors you need to know while buying a backup health insurance plan?

Some of the facts you must know about a health backup plan are -

  • Buying a backup policy

A backup policy can be bought from the current insurer or a new one. You can buy it online along with your base plan.

  • Eligibility criteria

To buy a backup health insurance plan, you must be above the age of 18. However, the maximum age is 80 years. Moreover, a dependent child can buy it till the age of 25. All these differ according to the insurance provider.

  • Sum assured & premium.

A top-up plan's premium is based on the insured amount, deductible, and the insured's age. Decrease the deductible, and vice versa, to lower the premium.

  • Deductibles

Deductibles are the amount you bear at the time of the medical emergencies, while the rest would be payable by the insurance provider. The amount exceeding the selected deductible will be reimbursed using the top-up or backup insurance as per the terms of the policy. The deductible may be used in individual claims if the insurance is taken on a floating sum insured basis.


No matter if you have a basic or comprehensive health insurance plan, a health backup plan can be beneficial in almost all times of dire need. You can buy it online as it gives you the benefit of comparing the premium and the sum assured offered by various insurers.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.