Why Purchase Long Term Health Insurance?
Updated On Dec 03, 2020
In recent years the costs of medical care have surged and will most probably continue to do so. With such increasing costs having health insurance has become crucial. In India, we are only recently waking up to the need for health insurance. However, with so many types of health insurance what is the best option? Long term plans prove to be the best type of health insurance to purchase. But what are they exactly? Read this article to find out.
What is a Long Term Health Insurance Plan?
As the name suggests, long term health insurance is designed to give coverage for a longer period they usually last for 2-3 years before they need to renew rather than on an annual basis. With this type of scheme, the policyholder pays a premium which is an aggregate of the tenure in one time. However, some insurance companies also offer payment through installments. The best part about these long term plans is that the premium is mostly offered at a discounted price.
What are the Benefits of a Long Term Health Insurance Plan?
The following are the benefits of purchasing long term health insurance:
- Tax Benefits: Under section 80D of the Income Tax Act having long-term health insurance makes you eligible for tax exemptions. Thus when you pay the premium for such a plan you can apply for deductions.
- Cost-Effective: Long term health insurance plans have tenures for 2-3 years and cover any health emergencies within this period. It saves the insured from any unannounced diseases and is far more hassle-free
- Discount on Premium: The insurance premium rates for plans with longer tenures are lower than those that are on an annual basis.
- Lower Possibility of Lapse: Remembering renewal dates and making the payment before time can be a hassle, moreover, many of us seem to forget about it as well. With a long-term plan, you are saved from this hassle for 2-3 years at a time. This also drops the possibility of your health insurance lapsing due to non-renewal.
- Coverage for Pre-Existing Diseases: Some companies do provide insurance coverage for pre-existing conditions adding to the benefits of having long-term insurance.
Takeaway
In a nutshell, a long term insurance plan is one that has a longer tenure than the annual plans. They usually range from 2 to 3 years at a time. There are a number of benefits of purchasing this type of plan such as its cost-effective nature, the tax benefits, lower insurance premiums, less hassle with renewal, and coverage for pre-existing conditions. Moreover, in the long run, this type of scheme proves to be far more economically effective. Purchasing insurance is a simple process that can be done almost entirely online now. With a few clicks, you check and compare the different health insurance companies, the plans they offer, calculate premiums, and even renew existing plans. To know more about health insurance you can read similar articles, click here.
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.
