The saying, "Health is wealth," stands true for many reasons. Maintaining good health is paramount because poor health can lead to unforeseen financial burdens. Fortunately, health insurance planning can be a safety net. However, considering the rising medical costs, is an annual healthcare plan enough?
That is where multi-year health insurance plans come into play. As their name implies, these policies provide coverage for extended periods, often spanning two or more years. It presents a streamlined process and ensures continued protection. This article outlines what multi-year best health insurance policy in India means and its benefits. So, keep reading!
What is Multi-Year Healthcare Insurance?
A multi-year healthcare insurance plan provides coverage for more than one year. Policyholders need to pay the premium at the time of buying the policy at once. It means they do not have to worry about renewing it every year, like in the case of annual healthcare insurance.
Usually, insurance policies offer coverage for one year and require timely renewal. Multi-year insurance is the long-term alternative to annual plans and is much more economical and convenient.
What are the Benefits of Multi-Year Healthcare Insurance?
Healthcare insurance providers facilitate a multi-year option on insurance plans to provide the insured with various benefits. Some notable advantages are:
1. Eliminate Annual Rate Hikes
Healthcare policy premiums tend to rise as individuals enter higher age brackets. Nonetheless, opting for a multi-year insurance plan offers the distinct advantage of fixing the premium rate for the subsequent two to three years. It holds particular significance considering the ongoing escalation of medical treatment costs and various other healthcare expenses.
It allows policyholders to effectively shield themselves from the anticipated premium hikes in the coming two to three years while ensuring financial predictability and savings.
2. Long-term Policy Discounts
Multi-year insurance policies offer a discounted premium structure compared to their annual counterparts. These policies extend a noteworthy cost advantage, with discounts typically falling within the range of 5% to 15%. The reduction in premium expenses can translate into substantial savings for policyholders.
One can allocate these freed-up funds toward various financial objectives and aspirations. Such financial benefits secure healthcare coverage and facilitate a more efficient financial strategy to fulfil broader financial goals.
3. Simplified Premium Payment
Many individuals have the misconception that a multi-year healthcare insurance plan requires a substantial upfront payment, as it involves covering the premiums for two to three years in advance. But it is not true! Multi-year healthcare plans present the flexibility to purchase and opt for monthly, quarterly, semi-annually, annually, or lump sum payments.
These diverse payment options provide financial relief to policyholders and cater to their convenience uniquely. It ensures that policyholders can protect their health without incurring significant immediate costs.
4. Yearly Tax Benefits
Insurance plans allow individuals to benefit from tax deductions under Section 80D of the Income Tax Act 1961. These deductions apply to the premiums paid for the policyholder, their spouse, and dependent children up to a limit of ₹25,000.
It is important to note that one cannot claim the entire premium for a multi-year policy in a single financial year. Instead, individuals must claim a proportionate amount of the premium each year.
5. No Renewal Hassles
Purchasing a multi-year healthcare insurance policy simplifies the need for annual renewals. It allows policyholders to make a single purchase and have health coverage for the selected duration. Thus, it eliminates the risk of forgetting to renew the policy in a timely manner.
Opting for a multi-year insurance plan helps prevent such challenging situations. It ensures consistent coverage throughout the chosen policy term, brings peace of mind and safeguards against unexpected health-related financial burdens.
Conclusion
Multi-year insurance coverage is cost-effective and protects policyholders financially for an extended period. A comprehensive policy with a high sum insured also promises better protection. However, it is always good to discuss the terms and conditions with the insurer to ensure that one secures the best health insurance.
Niva Bupa the best health insurance company in india provides customised and some of the best health insurance plans for individuals, families, and senior citizens. Those searching for a comprehensive healthcare plan can benefit from coverage of medical treatment and hospitalisation expenses while also availing of tax benefits.
