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Top Benefits of Multi-Year Health Insurance Plans
Have you thought about upgrading to a multi-year health insurance? Do you think it is beneficial than the yearly insurance plans? Let’s talk about multi-year insurance meaning and its benefits in this post.
Health insurance played a considerable role in our lives even before Covid19. However, the recent episode of the pandemic has made health insurance an inevitable part and a top priority of most households. People generally buy yearly health insurance plans that need renewal on a per year basis. But do you know that you can gain striking benefits by upgrading your health plan to a multi-year policy. Let’s discuss the key points why it is beneficial to upgrade your health policy in this post.
Why to Upgrade to multi-year Health Insurance Plans – Advantages of multi-year policies
As compared to the regular yearly health insurance plans that need annual renewal, multi-year insurance plans can be generally bought for 2 to 3 years. Here are some of the benefits of buying multi-year health plans:
- Concessions of Long-term Policy – With multi-year health insurance plans, the insured is likely to get better discounts. If you purchase a policy for a 2 year duration, you could receive at least a 10% discount offered by most health insurance companies. Further, multi-year policies of 3 years help the insured in lowering their health insurance premium by over 15%. So, if you are paying a premium amount of Rs 600 per year for your health insurance plan, you can get a discount of 10% and make it Rs 540 per year by buying a 2 year insurance policy. And in case you purchase a 3 year insurance plan, the premium will further reduce to Rs 510 per year.
- No Hassle of Policy Renewal – With yearly health plans that need to be renewed annually, the hassle of renewing the policy on yearly basis is there. And in case you miss the date by mistake, there are further issues of coverage being removed. In such a case, you will have to stay uncovered for a certain time period. And if a medical emergency occurs during that time you will have to bear the expenses on your own. Also, you will lose benefits under your plan like NCB etc. that you have gained so far. However, with multi-year insurance policies, you are not required to worry about renewing the policy every year. Further, you don’t have to keep money ready for premium payment on a yearly basis. You can just pay the one time premium for 3 years while buying the policy and relax for a couple of years.
- Low risk of annual Premium hike – Due to inflation, the premiums of health insurance companies can hike at any time without any warning. Also, with age the chances of hike in premium increases mainly because of the age-related illnesses. Moreover, the constant threat of deadly diseases can also raise the premium any time. Thus, buying a multi-year policy is a good option because with multi-year policies you can lock the premium for at least 3 years. So, in that case whatever happens, your insurer cannot hike the premium for 3 years. Hence, you can avoid the annual premium revision to save enough money.
- You can pay the premium in EMIs – Multi-year policies also allow you to pay the premium on EMI basis like all best health insurance plans. So, you can have an easy installment to pay the premium without burdening yourself financially . Further, you can make the payment as per your choice of frequency. Thus, it means that can make the payment of a multi-year policy on a monthly or quarterly basis as well as annually or bi-annual basis.
- Avail Multi-Year Health Insurance 80D Tax Benefits – With multi-year policy, you can avail tax benefits on the premium of your policy like in the case of annual policies. However, as per government rule the insured can claim for a balanced amount of the complete premium for each financial year.
So, if the premium of your multi-year health insurance plan is Rs 45,000, you can claim per year deduction in tax of Rs 15,000 for 3 years as per Section 80D of Income Tax. However, you need to check with the insurer to get further details before buying a multi-year policy.
Benefits of Multi-Year Health Insurance Plans
What is Multi-Year Health Insurance? As the name suggests, a multi-year health insurance cover will keep you covered for more than one year. You need to pay the premium in one go at the time of buying the policy. This way, you won't need to worry about renewing it every year like in case of annual health insurance.
What is a Multiyear Plan? It is a plan which allows decision-makers to set long-term priorities and work toward goals, rather than making choices based only on the needs and politics of the moment.
Multi-year contract means a contract for the purchase of supplies or services for more than 1, but not more than 5, program years.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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