Long-Term Health Insurance & Its Benefits
Updated On Jan 22, 2021
Has health insurance consumed your mind for the past few days? Do you want to choose a policy that protects you and your loved ones for a long without demanding much effort from you in return? If so, it is advised to go for a long-term health insurance policy. Confused? Don’t be! Long-term health insurance is just like any other health insurance policy, except for the fact that it is distinct in a unique way. How? Let us find out the same.
What Is Long-Term Health Insurance?
Health insurance is nothing less than a boon. When rightly purchased, health insurance relieves one from financial concerns. Moreover, it relieves the insured and their family members from the stress that comes naturally during a medical emergency. Still, health insurance can cause inconvenience. How? It is because health insurance renewal can become a tedious task when done on a yearly basis.
Long-term health insurance is a solution to the burden of yearly policy renewal. After receiving IRDA’s recommendation, health insurance companies have started offering long-term health insurance policies. True to its name, long-term health insurance has a tenure of more than the usual 1 year. The policy term of long-term health insurance can be multiple years, right from 2 to 3 years of a single health insurance plan. Talking about benefits? There are many!
What Are the Benefits of Long-Term Health Insurance?
The list of long-term health insurance benefits includes:
1. Freedom From Renewal Stress - Long-term health insurance will help you say goodbye to policy renewal for the next two to three years. What’s best is that you won’t have to worry about missing the due date for policy renewal.
2. Reduced Paperwork - Your long-term health insurance will play a significant role in minimizing the paperwork and hassles related to it. However, note that the benefit of this particular feature will vary based on your health insurance company.
3. Lowered Premium Cost - The fixed rate of premium is one of the key benefits that attract many health insurance policy buyers to long-term health insurance. After all, with a yearly rise in the cost of healthcare, customers find it cost-effective in choosing a health insurance policy that comes at the same premium rate for a long time. So, if the lock-in period of a long-term health insurance plan is 2 or 3 years, it becomes immune to any revision rate. In other words, a long-term health insurance policy buyer gets a discount on the premium cost.
4. Saving Income Tax - Long-term health insurance can also help you with your tax savings. According to Section 80D of the Income Tax Act, you will gain tax deduction on the premium you pay. So, in case, you decide to buy a health plan for yourself and your parents, you will be eligible for tax exemption up to Rs. 50,000. However, it is advised to buy a plan that suits your income and not buy long-term health insurance just to save tax.
5. Superior Health Protection - It is important to understand that a long-term health insurance policy keeps you protected for a period of a minimum 3 years. During this time, one doesn’t have to worry about the cost of medical expenses. This comes across as massive support when lifestyle diseases are increasing and the younger generation is becoming prone to them.
Now that you are aware of what long-term health insurance has in store for you, go ahead with its purchase without giving any second thoughts. Make sure you read the policy wordings carefully before going ahead with the purchase. Knowing what all you will be covered or not covered for and at what price will save you from last-minute disappointments, especially during a medical emergency.
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.