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Insurance Expert - Answered on Dec 22, 2022

Sanjib Jha is the CEO of Coverfox Insurance. His expertise includes health and auto insurance. He has over 22 years of experience in the financial sector. He has completed his post-graduation from the Institute of Company Secretaries of India.... more
Dinesh Question by Dinesh on Dec 22, 2022Translate
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What is difference between sum assured of a certain amount without top-up and same amount with a top-up? Kindly explain pros and cons.

Ans: Hi Dinesh, to answer your query, top-up plan is an additional sum assured over the base policy.

For example, if you have a base policy with sum assured of 5 lakh and a top-up policy over it with a sum assured of 10 lakh and you raise a claim for 7 lakh, the 2 lakh difference will be covered by the top-up plan. However, if you don't have a top-up plan you will have to pay it from your pocket.

Top-up plan can be subscribed to when you feel the sum assured value of your base policy will not provide enough coverage. There are no cons of buying a top-up policy; it is advisable that with age one increases their coverage amount to be on a safer side.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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