It is preferable to select a cost-effective, multi-year health insurance policy in light of rising medical costs. Additionally, it will save the individual and his family the hassle of annual renewal, as not renewing a policy annually will leave them without coverage.
The insured is required to make one lump sum payment of the premium for a health insurance policy that lasts for more than three years, and insurance companies typically provide discounts ranging from 10 to 15 percent on the total cost of the policy. Since most plans allow for renewal for life, the savings can add up quickly.
Under Section 80D, the policyholder is entitled to a yearly tax benefit of up to 25,000 for themselves, their spouse, and their children throughout the policy’s duration. The premium can be paid over time through EMIs, making it less expensive to pay all at once.
Fixed premium
Because the premium remains constant throughout the policy’s term, there is no need to be concerned about periodic price increases brought on by changes in lifestyle, policyholder age, or medical costs. It is possible to renew the policy once the term has expired. The insured will receive the no-claim bonus if there are no claims during the policy term. Both family floater and standalone multi-year health insurance policies are offered by insurers.
Avoid porting
In the event that a policyholder is dissatisfied with the services provided by the health insurance company and wishes to port a multi-year policy during the term, the policyholder will forfeit the premium paid because health insurance portability is only permitted during the time when the policy is renewed.
Therefore, if you intend to purchase a new policy, select a comprehensive, multi-year health insurance plan to remain covered for a longer time.
