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Benefits Of Long-Term Health Insurance Plan Explained

Updated On Oct 22, 2020

Long-Term Health Insurance Plan And Its Benefits

The recent Covid pandemic has not only taken the world by storm but has also taught us about the importance of having covered in the form of health insurance. Considering the fact that diseases are uninvited and can affect any age group, having health insurance is no longer a thing only for the adults or something that is specified to a certain age group. 

Also, the increasing healthcare cost in India makes it often unaffordable for the common man to bear medical expenses. Thus, with time, it has become all the more important to have a right health insurance plan and that too with the right validity tenure. One great solution for all health insurance needs is a long-term health insurance plan.

What Is Long-Term Health Insurance?

Long-term health insurance policies are designed to cover the health as well as the financial future of the policyholder. Generally available with a tenure of 2-3 years, these insurance policies serve as a great alternative to basic one-year health insurance plans. 

Under this scheme, a policyholder is required to pay the aggregate premium for the overall tenure of the coverage at once, at the time of purchasing the policy. A long-term policy tends to provide the insured with continuous coverage over the decided tenure, without the need to pay annual renewal premium.

Features Of Long-Term Health Insurance

Given below are the features of long-term health insurance plans:

Longer Tenure: Issued over a definite period of 2-3 years. 
One-Time Payment: Premium is generally paid at one go. However, several insurance companies also allow the options for installment in premiums.
Economical Option: Discount is offered over a premium of a long-term health insurance.

Benefits Of opting Long-term Health Insurance

Long-term health insurances offer some benefits over the regular health insurances. These benefits include the following:  

1. Cost-Effective Nature: Having a long-term health insurance policy ensures protection against any form of medical emergencies for over 2-3 years. It keeps the insurers relieved from the cost of health expenditures and proves to be an effective aid against unannounced diseases. By saving the insurers from missing the deadline or complicated paperwork, long-term health insurance proves to be highly cost-effective. 

2. Tax Benefits:  Long-term health insurance is one of the most effective tools when it comes to providing you with a health cover besides helping you save tax. Insurers can opt for tax exemptions under section 80D of the Income Tax Act, allowing you to apply deductions on the premium you pay.

3. Discounts on Premiums:  One of the major benefits of opting for a long-term insurance plan is lowered premium rates. Interestingly, most of the long-term health insurance plans offer their customers options to avail of discounted premium when compared to the short-term health insurance plans. 

4. Decreased Probability Of Lapse:  Renewing health insurance on a yearly basis has a probability of lapse, owing to a high frequency of periodical renewing. When it comes to the long-term health insurance plans, the factor of lapse is eliminated as the frequency of renewals is reduced. Considering the decreased probability of lapse, health insurance is certainly on the safer side. 

5. Options To Cover Pre-Existing Disease:  Interestingly, there are some insurance companies that provide their customers with a cover over pre-existing diseases or pre-existing conditions. Having a cover over underlying diseases or ailments adds to the benefits of owning a long-term health insurance policy. 


Looking at the benefits of long-term health insurance, it is undoubtedly one of the most effective and economical practical choices, given the increasing cases of diseases in today’s day and age. long-term health insurance is indeed one of the best permanent solutions for health expenses in the future.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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