Health insurance in 2021 is an unskippable investment. ‘I am fit and need no health insurance’ is a common excuse among the youth. But when a curveball of health complications arises, neither does the excuse work nor does the optimism hold up. The only thing that comes to the rescue is a health insurance plan. Thus, you must include health insurance in your financial portfolio.
The COVID-19 pandemic affected everyone around the world and hence, the importance of health insurance cannot be overlooked. It is best to buy health insurance
early in life as age plays a critical role impacting the premium amount. When you are looking out for a health insurance policy, there are various plans to choose from based on its validity. Short-term and long-term plans are two such options. While a standard policy is generally for a period of one year which is categorised as short term, long-term plans, as the name suggests, extend for longer periods up to two or three years. A long-term plan is advisable if you are someone who does not wish to undergo the hassle or renewal each year.
Reasons to invest in a long-term health insurance plan
Long-term plans are available for different types of health insurance plans. Since these plans are valid for a longer duration, you need not worry about the frequent renewal in a short-term policy. Thus, any case of missed deadline can be avoided with a continued coverage for extended duration.
Lower insurance premiums
When it comes to long-term plans, the main advantage is lower premium. A long-term policy offers savings of premium when you compare health insurance the aggregate premiums of short-term plans. Thus, you can avail reduced premiums when it comes to long-term policies along with coverage for extended durations.*
Just like standard health insurance plans offer tax benefits, long-term plan also enables you to claim a deduction in your return of income. While a health insurance is not a tool primarily designed for tax-saving purposes, it offers an added benefit along with offering protection for your health. Although, you must remember that these tax benefits are subject to change in the prevalent tax laws.
Pre existing diseases
Coverage for pre-existing ailments
are those medical conditions that are already diagnosed and for which treatment is being sought at the time of purchase. A long-term policy covers these pre-existing conditions based on the policy terms, either impact the premium or levy a waiting period or both. However, the ailment is covered once such waiting period is complete thereby offering comprehensive coverage for all illnesses.*
Bypassing rate revisions
Rate revisions are inevitable due to soaring prices of healthcare. However, a long-term policy helps to bypass such revision by paying premiums together for a longer period of either two or three years. Thus, periodic revision of insurance premiums can be bypassed when you have a long-term policy.*
*Standard T&C Apply
With these benefits of a long-term policy, you must consider buying if you want a stress-free insurance renewal without the hassle of frequent policy renewals. Also remember to compare health insurance
and get a policy early in life as it offers a lower premium for young age as compared to older buyers. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.