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Monday, April 15 2024

6 Advantages of Purchasing a Multi-Year Health Insurance Policy

Health Insurance
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A multi-year health insurance policy is a more long-term option than an annual health insurance policy. A multi-year policy, as the name implies, provides coverage for a period of two or more years. It often lets policyholders pay the premium for the next two or three years all at once when purchasing the policy, saving them the inconvenience of renewing it every year. While such programmes have numerous advantages, it is important to understand that they also have significant drawbacks.

Here Are A Few Benefits of A Multi-Year Health Insurance Policy

1. Discount on long-term plans

Customers that pay multi-year payments at once are frequently given discounts by insurers. The discounts normally vary between 7% and 15%, which might result in further savings for customers. Customers purchasing a single-year health plan are usually not eligible for these reduced premiums.

2. Hassle-free renewal

Most health insurance policies require you to renew your policy every year. However, buying multi-year health insurance eliminates the need for annual renewals. These plans often include a two- or three-year renewal period.

Some of these plans offer coverage for therapies ranging from modern to traditional. One can have mental illness coverage, as well as the possibility of obtaining a second e-opinion on serious disorders when necessary. As a result, an individual can be protected for a longer length of time with a single plan.

3. Waiting period coverage

Multi-year health insurance plans of two to three years have the advantage of eliminating the waiting period at each renewal.

4. Tax exemptions

Multi-year health insurance plans also provide tax advantages. Under the Income Tax Act, one is entitled to a tax deduction for the premium paid toward the policy. Depending on the insurance purchased, the policyholder may be eligible for a tax deduction of up to Rs 50,000.

5. Fixed premiums

A multi-year health insurance plan protects you from any changes in premiums. The rising cost of healthcare has an impact on the premium value of health insurance, resulting in an annual increase. Multi-year health insurance plans, on the other hand, have a fixed price that secures one under a comprehensive plan for a few years.

6. Reduced paperwork

If you purchase multi-year health insurance you will benefit from Long-term health plans that dramatically reduce the quantity of paperwork required.

A health insurance plan is a long-term product. Therefore, if you don’t want to deal with the inconvenience of renewing your policy each year and can afford the higher one-time premium outlay, choosing a multi-year health insurance plan may be advantageous. A health insurance plan, whether multi-year or not, is your lifelong companion. So, don’t disregard it and make it your number one priority.

Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise towards informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less travelled territories.

Photo by Olya Kobruseva

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