Health insurance in today’s times is no luxury but a sheer necessity. Skipping a health insurance plan can attract financial troubles in the long run. When buying a health insurance plan, your requirements must be kept in mind and only then select one among the plethora of choices. But whichever policy you buy, it needs to be renewed consistently. Timely renewal helps to keep your coverage active consistently. While this renewal process can sometimes get cumbersome, a multi-year policy is a nifty way to ensure you have health insurance cover as well reduce the hassles of annual policy renewals.
Needless to point out that it continues to offer your usual policy features like cashless coverage, maternity cover, ambulance charges, etc. If you are planning on switching from an annual policy cycle to a multi-year policy, here are some of its benefits that you can avail. *
- Concession in premiums
One of the major advantages of switching to a multi-year plan is availing a markdown in your overall premium amount. Since the policyholder commits to pay for insurance premiums for an extended period, the insurance company offers a concession. *
The concessions can be up to 10% for two-year policies whereas may even go up to 15% for three-year plans. Considering the savings in premium, it can be a smart way to opt for a multi-year plan as you will avail health insurance coverage each year. *
- Saving more by locking in the premium amount
Another advantage of a multi-year plan is that your premium amount remains fixed for multiple years when you choose a multi-year policy. While the medical treatment costs may increase, the premiums remain fixed for the said tenure of your policy. Further, insurance premiums also increase with age and yet your premiums remain fixed when you opt for a multi-year plan. So, with a multi-year policy, you need not worry about premium increase as it gets locked in for the duration of your plan.*
- Longer coverage without frequent renewals
In your busy schedules, it is helpful when your to-do list is short. Among several things that you might skip on, a health insurance policy is the last thing you would want to skip by missing its renewal date. This will end up in you losing your renewal benefits. Despite the grace period to renew your plan, the insurance policy’s scope does not cover illnesses occurring during the grace period. A multi-year policy solves all these problems in one go where you need not make time from your schedule to narrow down on an insurance plan each year. At the same time, you continue to avail renewal benefits and have consistent coverage for each year. *
- Tax benefits of health insurance
The tax benefits of health insurance available in a standard annual plan are even available for multi-year plans. Thus, even if you have bought a plan that helps you save taxes while offering coverage, you are covered. But if you happen to pay the premium for the entire duration at once, its tax deduction will be available proportionately over the duration of your policy.You must remember that tax benefit is subject to change in tax laws’*
Now that the benefits of a multi-year plan are explained, it is not much different from your standard annual plan in terms of coverage but definitely has some unique advantages in terms of savings and convenience. To compare the benefit it offers by way of savings, you can make use of a health insurance premium calculator.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.