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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Non-Life Insurance Products

Ms. Iyer, a 35-year-old professional, holds a Rs 5 lakh base health policy. She wants to increase cover to Rs 25 lakh cheaply while accepting that smaller claims will be borne by herself or the base policy. Which product best fits?

A super top-up policy with a deductible equal to her Rs 5 lakh base cover fits best. It pays once aggregate yearly claims exceed the deductible, extending protection economically, unlike personal accident, fixed-benefit critical illness or travel policies.

  1. AA super top-up policy with a deductible equal to her base coverCorrect
  2. BA personal accident rider alone
  3. CA fixed-benefit critical illness plan in place of hospitalisation cover
  4. DA travel insurance policy

Explanation

A super top-up pays once aggregate claims in the year exceed the deductible, so with a Rs 5 lakh deductible it extends cover to Rs 25 lakh at low premium. Personal accident, critical illness and travel policies do not extend hospitalisation cover in this manner.

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