The Buy Desk
Multi-year health insurance policy is for individuals who want to be free from the hassle of renewing health insurance every year and are ready to pay a higher one-time premium. Learn all the benefits of a multi-year insurance policy along with its limitations, here.
Different Benefits of Multi-Year Insurance Policy?
Given that medical conditions are unpredictable and the healthcare facility is ever rising, medical insurance has turned into a life-saver. The multi-year insurance policy is a new shot that covers your health for several years without the need for paying insurance every year or renewing it.
According to the experts, it is one of the most affordable and practical options for people who are serious about their future. The insurance provides coverage for two or more years by allowing users to pay the premium of the same altogether.
The Advantages of Multi-Year Health Insurance Policy
Multi-year insurance policy is suitable for those individuals who do not want to renew insurance yearly for any reason and are ready to pay the premium for two or three years in one go. The benefits of this plan are:
Reduced Premium – This is a good option for individuals serious about health insurance. The product benefits users by letting them pay the premium in one go instead of parts. And for paying the amount in one go, individuals also get discounts. It normally ranges between 7 to 15 per cent.
Lock-in Benefits – The premium paid for health insurance varies according to age. It grows with the age. E.g. the premium for a 50-year-old individual can be 30-40 per cent higher than a 25-30-year-old. The multi-year health insurance policy freezes the premium beforehand.
No Hassle For Renewal – A plan that gives two-three years of coverage usually advantages the individuals by warding off the requirement for the waiting period at every renewal. It also reduces the documentation process.
Tax Benefits – The plan also gives tax advantages under section 80D. It can be up to Rs 25,000. One can amend the amount spent on premiums according to their requirements to save tax.
Fixed Premium – By choosing the multi-year premium, one can become immune to revision in the premium that usually happens every year. Increasing medical cost directly impacts the insurance premium. The increased medical cost means an increased premium. In multi-year health insurance, the individual pays the premium for two-three years in advance at the floating rate.
Disadvantages of Multi-Year Health Policy
Once you buy a policy by paying a premium of 3 years then you can’t port out from this policy. Every policyholder has the right to shift/port their policy from one insurer to another if they do not like the features or service of the company. But when you buy a multi-year policy then you can’t port your policy in those years for which you have paid the premium.
Getting the right health insurance policy gives multiple benefits. It facilitates individuals suffering from illness to get the best medical facility without worrying about the treatment cost. Multi-year insurance policy is another product to encourage individuals to buy health insurance. It is much needed as even after a higher medical cost in India, the takers of the health insurance policy are fewer.
