Health insurance has risen to the top of our priority list in recent years. Most of us purchase annual medical insurance, which must be renewed each year. But did you know that purchasing a multi-year health insurance coverage might provide you with a plethora of appealing benefits? Continue reading to learn why you should consider purchasing multi-year health insurance.
5 Benefits of Purchasing a Multi-Year Health Insurance Policy
Multi-year health insurance plans are typically available for policy terms of two or three years. Check out these incredible advantages of multi-year health insurance plans:
Long-term policy discounts are available.
Purchasing a multi-year health plan allows you to benefit from the long-term policy discount. Most insurance providers provide a discount of up to 10% if you choose a policy length of two years. Similarly, purchasing a 3-year health insurance policy can cut your price by up to 15%.
For example, if your annual health insurance cost is Rs 600, you can lower it to Rs 540 by choosing a 2-year coverage. Similarly, if you choose a three-year coverage, you can save up to Rs 510 every year on your premium.
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There is no need to renew the policy every year.
If you have an annual health insurance policy, you must renew it every year to ensure that you have medical coverage at all times. If you do not renew your health insurance policy on time, the coverage on your head will expire, leaving you to fend for yourself in the event of a medical emergency.
Furthermore, if your policy has a gap, you will lose continuity advantages such as waiting periods and cumulative benefits.
However, if you have multi-year insurance, you won’t have to worry about remembering your policy’s due date every year. You also don’t have to worry about putting money aside each year to pay the cost. All you are required to do is pay the premium for three years at the time of policy acquisition, and you can rest easy for the next several years.
There is no risk of premium increases every year.
Because of inflation, health insurance premiums can rise unexpectedly. Furthermore, as you become older, the likelihood of a premium increase rises as you become more vulnerable to age-related illnesses. Furthermore, the persistent danger of COVID-19 may result in a rise in the premium.
However, if you have a three-year policy, your premium is fixed for those three years. Your health insurance company cannot charge you a higher rate for those three years, no matter what happens in the world around you. As a result, you avoid annual premium increases and wind up saving a lot of money.
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Pay the premium in simple EMIs.
You can pay the premium for your multi-year health insurance coverage in installments, just like you would for an annual health policy. This saves you the effort of organizing the premium amount for three years all at once. In truth, insurance providers allow you to make payments at your own pace.
This means you can pay your multi-year coverage premium in annual, semi-annual, quarterly, or monthly installments.
Every year, you can benefit from tax breaks.
A multi-year health insurance policy can also provide tax benefits on the premium amount, much like an annual policy. You cannot, however, claim the entire 3-month premium in the same year. Every fiscal year, you can claim a proportionate amount of the overall premium amount according to government criteria.
For example, if you pay a multi-year mediclaim premium of Rs 54,000 over three years, you have the option to claim a tax deduction of Rs 18,000 per financial year for three years under Section 80D of the IT Act.
However, before purchasing a multi-year health insurance policy, examine the current tax policy to understand the terms and conditions.
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To Summarize
A multi-year health insurance policy is advantageous in more ways than one. You not only save a lot of money, but you also avoid the inconvenience of renewing the coverage every year. So, instead of renewing annual health insurance plans, consider a multi-year health insurance policy.
