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What Are The Benefits Of Long Term Health Insurance?

Updated On Jan 03, 2022

The current Covid epidemic has not only taken the world by storm, but it has also reminded us of the value of having health insurance coverage. Given that illnesses strike without warning and can strike anybody at any age, health insurance is no more a privilege reserved for adults or limited to a specific age group.

Furthermore, the rising cost of healthcare in India makes medical bills sometimes prohibitive for the average person. As a result, having the correct health insurance plan, with the right validity period, has grown increasingly vital over time. A long-term health insurance plan is a perfect answer for all health insurance needs. To know more about the benefits of long term health insurance, read on.

What Are The Benefits Of Long Term Health Insurance?

What Is Long Term Health Insurance?

Long-term health insurance plans are meant to protect the policyholder's health as well as his or her financial future. These insurance policies, which are often offered for a period of two to three years, are a wonderful alternative to conventional one-year health insurance coverage.

A policyholder is expected to pay the total premium for the duration of the coverage all at once when obtaining the insurance under this programme. A long-term insurance often provides continuous coverage for the duration of the policy, without the need to pay an annual renewal payment.

Why Consider Long Term Health Insurance?

When you choose a long-term health insurance plan, the largest benefit for you as an insurance seeker is that you won't have to renew your policy every year. In comparison to 1-year health insurance policies, these plans are likely to have a lower premium.

When you lock in your insurance plan for three years, you become immune to any premium rate changes that may occur during that time. Long-term health insurance consumers can expect insurance providers to work out a deal and offer NCB (no-claim bonus) reductions. The benefits might be granted in the form of claim-related reductions since the NCB slabs are set by the Insurance Regulatory and Development Authority of India (IRDAI).

Features Of Long Term Insurance Policy

Following are the features of long term insurance policy -

  • Longer Tenure - Issued for a term of two to three years.
  • One-time payment - Most premiums are paid all at once. Several insurance firms, on the other hand, offer premium payment plans.
  • Economical Option - A discount is granted on a long-term health insurance premium.

Benefits Of Long Term Insurance Policy

Following are the benefits of long term insurance policy -

  • Cost-Effectiveness - Having long-term health insurance coverage protects you against any type of medical emergency for a period of two to three years. It relieves insurers of the cost of medical expenses and proved to be a useful tool in the fight against unanticipated diseases. Long-term health insurance saves insurers money by preventing them from missing deadlines or having to deal with cumbersome paperwork.
  • Tax Benefits - Long-term health insurance is one of the most effective instruments for providing health coverage while also helping you save money on taxes. Under section 80D of the Income Tax Act, insurers can seek for tax exemptions, enabling them to deduct the premiums they pay.
  • Premium Discounts - One of the most significant advantages of choosing a long-term insurance plan is the cheaper premium rates. When opposed to short-term health insurance plans, most long-term health insurance policies provide clients with the option of paying a lower price.
  • Reduced Risk Of Lapse - Renewing health insurance on an annual basis increases the risk of lapse due to the high frequency of renewal. The risk of lapse is avoided in long-term health insurance policies since the frequency of renewals is reduced. Health insurance is undoubtedly on the safer side, given the lower likelihood of lapse.
  • Pre-Existing Disease Coverage - It's worth noting that certain insurance companies offer coverage for pre-existing diseases or disorders. The benefits of possessing a long-term health insurance policy are enhanced by having coverage for underlying diseases or disorders.


Given the rising prevalence of illnesses in today's world, long-term health insurance is unquestionably one of the most effective and cost-efficient practical options. Long-term health insurance is, without a doubt, one of the greatest long-term options for future medical bills.

Also read - Challenges of Cashless Mediclaim

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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