Health Insurance: Get discount on premium for multi-year health policy

With the increasing cost of medical treatment, it is better to choose a cost-effective multi-year health insurance policy. In addition, it saves the hassle of annual renewals as failing to renew the policy each year will leave the individual and his family without any protection.

For a multi-year health insurance policy, usually for three years, the insured has to pay the premium all at once and the insurance company offers a 10-15% discount on the premium amount. The savings can be substantial in the long run as most plans offer a lifetime renewal option.

Policyholders can claim tax benefits of up to `25,000 under Section 80D for themselves, spouse and children year-to-year for the entire policy term. Premiums can be paid in EMI, reducing the burden of paying large sums of money at once.

Fixed premium

Since premiums are set for the entire term of the policy, one need not worry about periodic increases in premium rates either due to medical inflation or increasing age of the policyholder or lifestyle changes. After the validity period of the policy expires, it can be extended again. If there are no claims during the policy term, the insured will get the no-claim bonus benefits. Insurers offer multi-year health insurance policies both standalone and family floater.

Avoid porting

If the policyholder is not satisfied with the services of the health insurance company and wants to transfer the multi-year policy during that period, the policyholder will forfeit the premium paid because health insurance portability is only allowed during the policy renewal period.

So, if you are planning to buy a new policy, choose a comprehensive multi-year health insurance plan and stay protected for a long period of time.