The typical policy period for multi-year health plans is two or three years. Check out a few incredible advantages of long-term health insurance plans for family:
- Get concessions on long-term policies
You can benefit from the long-term policy concession by purchasing a health plan for a longer period of time. When choosing a policy tenure of two years, the majority of insurance firms provide concessions of up to 10%. Similarly, purchasing a 3-year health insurance policy will lower your rate by up to 15%. For instance, if your monthly health insurance price is Rs. 600, choosing a 2-year coverage will allow you to cut that cost down to Rs. 540. Similarly, you can lower your premium up to Rs 510 per year if you choose a multi-year coverage of three years. ##
- There is no need to renew the policy annually.
If you have an annual health insurance plan, you must renew the policy each year in order to maintain continuous medical coverage. Your coverage on your head will cease if you don’t timely renew your insurance, and you’ll be on your own in the event of a medical emergency. In addition, if there is a gap in your coverage, you will also lose the continuity of health insurance benefits, such as waiting periods and cumulative benefit. *
However, if you have a multi-year policy, you won’t need to worry about remembering your policy due date each year. Additionally, you won’t need to worry about saving money each year to cover the cost.
- No risk of annual premium increases
Due to inflation, health insurance rates can increase abruptly. Additionally, as you get older, the likelihood of a premium increase rises as well because you are more likely to get age-related problems. Furthermore, there is a chance that the premium will go up due to the ongoing danger of COVID-19. However, if you have a 3-year multi-year policy, your premium is fixed for that period of time. For those three years, your insurance company cannot raise your premiums regardless of how things change around you.
- Pay the premium with convenient EMIs.
You can pay the premium for your multi-year health insurance coverage in instalments, just like you would for an annual health policy. This saves you the hassle of paying the premium for three years at once. In fact, insurance providers let you make the payment at the frequency that works best for you. This means that you have the option of paying the multi-year policy’s premium in yearly, semi-annual, quarterly, or monthly instalments. ##
- Enjoy annual tax benefits
Similar to an annual policy, you can also receive tax advantages for multi-year health insurance coverage on the premium payment. The entire 3-month premium, however, cannot be claimed in the same calendar year. According to government regulations, you are entitled to a share of the entire premium amount each fiscal year. For instance, under Section 80D of the IT Act, you can claim a tax deduction of Rs 18,000 per financial year for three years if the multi-year mediclaim premium paid for three years is Rs 54,000. **
However, before purchasing a multi-year health policy, make sure to verify the current tax policy to learn about the terms and circumstances. A multi-year health insurance plan has numerous advantages. You avoid the headache of having to renew the coverage each year in addition to saving a significant amount of money. Therefore, instead of renewing your annual health insurance plan, choose a multi-year health insurance policy. **
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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