Does your company cover you with corporate health insurance or Mediclaim plans? If yes, this is a great news for you. So, let’s first understand “what is health insurance?” Under health insurance not only are you covered against medical emergencies but there are also various other benefits you can have. The truth of the matter is that the policy coverage of corporate health plans often ends up being inadequate. However, what if you could still get better medical coverage through these corporate plans and as an added benefit get higher tax deductions. This can be possible through Super top-up plans.

Wondering what are super top-up policies? Buying such policies entitles policyholders to a higher sum insured than the basic plan. If you opt for such plans, you will be able to claim the additional sum insured of the Super Top Up plan. This will enable you to meet the rising medical costs that the basic corporate health insurance may not be able to meet. If this is not enough, there are many other benefits of super top-up plans that are not included in top-up plans. Premium payments on super top up plans qualify you for tax benefits under Section 80D of the Income Tax Act, 1961. Note that tax benefits are subject to change in tax laws.

Features and benefits of Super Top Up Plans

Does choosing a higher cover automatically by super top-up mean you have to pay a higher premium? No, in fact, super top-up plans are not only offered at relatively low prices, but they are also considered low risk because there will be more deductible with top ups.

Without the need to purchase a basic policy, an individual can purchase them as a separate plan. They are available as an individual policy and as a family floater. They can be purchased from any insurance company and not necessarily from the company that your corporate health insurance plan was sold by. * Standard T&C Apply

Tax deduction

Premium paid on basic medical plans as well as top up and super top up plans are eligible for tax deductions under sec 80D of the Income Tax Act, 1961. Corporate Health Insurance / Mediclaim policies and the general top-up or super-top-up policies of an employee, his / her spouse and children up to a maximum of Rs. Up to ₹ 25,000 can be claimed as an annual tax deduction.

If an employee opts for a corporate health insurance policy to cover their parents and pays an additional premium of ₹ 25,000 additional tax deductions can be claimed.

To cover parents who are senior citizens, i.e., at least 60 years of age, a maximum of ₹ 50,000 can be claimed. This was declared in the Union financial budget in the year 2018. Previously, this limit was at ₹ 30,000.

Corporate health insurance policies offer the dual benefit of basic health insurance cover in addition to the tax deduction on premium payments. Top-up and super-top-up plans, however, provide the necessary incentive for your effective health insurance cover and subsequent tax deductions. Of these supplement plans, getting a super top up is obviously a great thing. Remember tax benefits are subject to change in tax laws. * Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.