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How Long-Term Health Insurance Can Benefit You ?

Rising health cost is a major concern for lakhs of average middle class families in India. A single trip to the hospital can burn a big hole in our pockets. This is a primary reason why people are encouraged to take health insurance plan at a young age. By doing so, you are not only exempted from undergoing a physical examination to detect pre-existing diseases, you will also be paying lesser premium amount.

Buying a health insurance is an investment for the future. You may not have to touch your health plan for the first few years. This is good thing, as you will get the advantage of no claim bonus (which will come in handy, when you will actually claimthe insurance plan) and of course you shall be subject to tax exemption under section 80D of the Income Tax Act. Despite the obvious advantage of health insurance, the task of yearly renewal can be a tedious affair. To reduce the burden of yearly renewal, many health insurers have started offering long-term health insurance policies, after the recommendation from Insurance regulatory and development authority of India or IRDA. Long term health insurance plans have several benefits. Some of them are listed as below –

Limits Paperwork

Depending upon the insurer, the tenure of a long term health insurance plan is anywhere between 2-3 years, as opposed to 12 months health plans that are required to be renewed yearly. A Long term health plan is not only logistically viable but plays an integral role in reducing a significant cost on paperwork.

No Worries about Renewal

Once you have signed up for long term insurance, you do not have to worry about renewing the policy for the next two to three years. You don’t have to work about missed deadline. Setting the reminder or keeping aside money for the same has to be done timely, otherwise you will not only forfeit the plan, but also the additional benefits that come with it.

Discounted Premium

The biggest deterrent, why people shy from taking health insurance is the high premium amount the policy holder has to pay. Although, no price tag can be attached to one’s health needs, a little discount will not hurt. Secondly, if the locking period of the insurance is 2 or 3 years, the policy is immune to any revision rate. Therefore, in the long run you do get a discount on the premium amount.

Health Protection

Health emergencies come unannounced. And considering the high cost of health care services, it is always better to own a health policy that will encourage you to opt for the best care, without having to worry about the cost of treatment. A long term health insurance plan keeps you protected for a minimum of 3 years. During this duration, you don’t have to worry about the cost of medical expenses. This is a big support at a time when lifestyle diseases are on a rise and younger individuals are becoming susceptible to them.

Long term health insurance policies are a practical and economically viable health insurance product. If you are young and healthy this is the best plan to opt for. However, most insurers may not offer this plan to senior citizens. This is because seniors are at high risk of developing health complications associated with old age, and many health insurance policies do not have viable plans for them. However, IRDA is expected to come up with further recommendations, where in long term health insurance will also embrace the needs of older health insurance seekers.

India is slowly, but surely warming up with the idea of health insurance. As the industry is maturing, insurance providers are coming up with innovative products that will encourage more and more people to come under the umbrella of health insurance.

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