Multi year health insurance policy not only gives freedom from policy renewal every year but also reduces the premium. Because insurance companies give a discount of 10-15% on the premium amount.
New Delhi. In the current era of diseases and epidemics, the importance of health insurance policy is increasing. Along with taking care of health, people have started buying health insurance as a priority. Generally, the health insurance policy comes for a period of 1 year and it has to be renewed again after the completion of the term, so sometimes the policy holder does not get health coverage due to delay in renewal after the expiry of the policy and in case of medical emergency. He himself has to pay the hospital expenses. To avoid such problems, insurance companies have now come up with multi-year health insurance policies.
Multi year health insurance policy not only gives freedom from policy renewal every year but also reduces the premium. This policy is generally for 2-3 years and the insured has to pay a one-time premium for it. Insurance companies give a discount of 10-15% on the premium amount.
Major advantages of multi year health insurance policy
- Generally, the premium increases on renewal of health insurance every year, but there is relief from the increasing premium in multi-year health insurance policy.
- The policy holder does not need to worry about the increase in premium due to any kind of health problem or increase in the age of the policy holder. The premium amount will be locked in for the next 2-3 years.
- If no claim is made during the policy term, the insured gets the benefit of no-claim bonus on renewal of the policy.
- The multi year health insurance policy is available in both individual and family floater options. In individual plan where only the policyholder gets protection. Whereas, in the family floater, the entire family gets insurance protection.
- The insured can claim tax benefit of up to `25,000 under section 80D for self, spouse and children year after year for the entire term of the policy.
Option to pay premium in installments
If you feel that you cannot pay the lump sum premium amount, then you can opt for EMI. In this, you can also decide the duration of the installments as per your convenience. It is a directive from IRDAI to allow customers to pay premium in EMIs, thereby making the policy accessible and affordable to all.
