The pandemic increased awareness of the value of health insurance as well as of how expensive hospital stays can be and how they may severely influence one’s savings in a number of ways. The best option is to get insurance that fully covers all medical expenses given that medical emergencies can happen at any time and that healthcare costs are escalating. As with term and other insurance policies, you can now get a health insurance policy that lasts for a number of years. Multi-year health insurance policies are the new frontier.
Health insurance acceptance in India is still quite low, despite a considerable rise in awareness over the past two years. Having an adequate health insurance plan is crucial no matter what stage of life you are in, and with the advent of multi-year insurance plans, this procedure might be considerably simpler.
What is a long-term health insurance plan?
A multi-year health insurance plan is the most practical and cost-effective way to prepare for any serious health problems that could arise in the future. A multi-year insurance, as the name suggests, will provide protection for a duration of two years or more. It allows policyholders to avoid the hassle of having to renew their insurance every year by allowing them to pay the payment for the next two or three years all at once when acquiring the policy.
Advantages of a long-term health insurance
Read more: 5 reasons why we must get a health insurance in early 20s
Less frequent renewals:
A multi-year health insurance plan can be beneficial for you if you don’t want to deal with the trouble of having to renew your coverage each year and you can afford the higher one-time premium expense. Here are some benefits of choosing a multiyear health insurance plan.
Lower premiums:
When customers pay premiums for several years at once, insurers provide them discounts. The discounts typically range from 7 to 15 percent, which could result in further savings for the customers. Frequently, customers who purchase a health plan for a single year are ineligible for these lower prices.
Lock-in advantage:
You may be aware that the premium you pay annually rises as you age. For instance, a 40-year-premium old’s may be 30–40% higher than a 30-year- old’s. By deciding to pay a multi-year premium up front, the premium amount for the following two to three years can be fixed. This can help you avoid the predicted premium increase if the insurance increases them.
Tax exemption:
Section 80D of the Income Tax Act permits tax benefits of up to 25,000 on health insurance premiums paid for oneself, one’s spouse, and one’s children. To get the tax benefit, you can, however, proportionally divide your one-time premium payment over the course of the plan’s duration if you select a multi-year health insurance plan.
Easy to go process:
The advantage of two-to three-year plans is that there is no waiting period needed before each renewal. Furthermore, the amount of documentation required is significantly reduced by multi-year health plans.