Should You Be Buying Multi-Year Health Insurance Policy?

Multi-year health insurance policy is the new realm and similar to term and other insurance that you buy, now you can bag a health insurance cover extending for several years. So some of the companies now also offer coverage for 2-3 years and as the tenure comes to an end you need to renew the policy to continue getting the health cover against the costs.

Benefits of availing such an extended health coverage

Lower premium: For the extended period, if you buy the health cover then you can get the same at a reduced cost in contrast what you pay year on year. Also, it is to be noted that unlike the car insurance or the like, there can be an instance of an increased premium year on year based on escalating inflation. Also, this premium is fixed and so spares the policyholder of otherwise hike in premium each year.

Less of a hassle: As for these plans you don't need to remember the term as to when the policy is ending and worry on renewing the same year after year. There is also a plan on offer that allows the insured to renew the policy anytime in their life. Also, mental problems are now being offered under such plans.

Waiting period: Here such a plan also eliminates the otherwise required waiting period on every renewal.

Extended healthcare coverage: Similar to regular health plans, these plans also offer comprehensive healthcare coverage. Also, you can go for top-up plans for added healthcare coverage.

Tax benefits: Akin to regular plans, these plans also offer tax deduction for the premium paid towards healthcare insurance under Section 80D. So an individual tax assessee can draw a benefit of up to Rs. 50,000 for the premium paid each year. So, with such a policy in place the insured need not worry about the policy being effective for just the first year of health insurance plan. Nevertheless, one can choose to claim it year by year. For example, if you have paid Rs. 50000 for a five-year policy, the amount of tax deduction you can avail per year will be Rs. 10000.