Long-Term Health Insurance: An Introduction
India has the highest medical inflation rate in Asia at 14% according to the latest report called the 'Health Report of Corporate India 2023' published by Plum, an insurance technology company. What does this mean for you and me?
It means that investing in health insurance is no more a choice, it is a necessity. With the consistently rising healthcare costs, selecting the best long-term health coverage for yourself and your family is best.
This article sheds light on the nuances of long-term health coverage, including features, benefits, and why you must invest in long-term health insurance.
What Is Long-Term Health Insurance?
Typically a health insurance plan has a tenure of 1 year which needs to be renewed annually. However, you can invest in long-term health plans with a policy tenure of 2 to 3 years.
If you are wondering if purchasing long-term health insurance is going to be expensive, do not worry. Often health insurance providers offer you with hefty discounts on purchasing long-term health plans. Similarly, there are multiple reasons to invest in a long-term health plan which are discussed in the next section.
Long-Term Health Insurance Plans Benefits
There are multiple benefits to purchasing a long-term health plan like
-
Avail Of Discounts On Premiums
Many health insurance providers encourage insurance holders to invest in long-term health coverage as it offers them premium discounts lowering the overall cost of the premiums. -
Peace Of Mind
Live a stress-free life when you do not have to worry about renewing your health insurance plan yearly. If you have a long-term health plan you are covered consistently for 2 or 3 years. This way you and your loved ones are covered for a long period letting you focus on other financial investments. -
Renewal Premiums Stay Constant
A health insurance plan revises your health insurance premium at every renewal as per your age, health conditions, etc. When you invest in a long-term health plan you are not due for any renewals for the next 2-3 years helping you save money by avoiding any hikes in premiums. -
Tax-Benefits
Avail tax benefits under section 80D of the Income Tax Act of the prevailing Indian Tax Laws. -
Protect Your Benefits
Not renewing your health insurance plans on time every year can lead to losing your accumulated health insurance benefits like no-claim bonus, wellness benefits, etc.
Investing in a long-term health insurance plan will relieve you from the stress of renewing your health plans for at least 2 or 3 years safeguarding your benefits.
What Is Covered With Long-Term Insurance Plans?
Let us take a look at the inclusions of long-term health insurance plans:
- Pre and post hospitalisation expenses such as doctor's visits, pharmacy, diagnostics, room rent, etc are all covered
- Coverage for daycare procedures, AYUSH Treatments, ambulance cover, etc
- Coverage for organ donors
- Wellness benefits such as health coaches, webinars, and premium discounts, are available with long-term health insurance
- Depending on your long-term health plan, you can avail of maternity benefits including pre and post-natal expenses
Long-Term Health Coverage Eligibility Criteria
Eligibility criteria for long-term health plans are similar to those of a regular health plan.
| Eligibility Criteria | Specifications |
|---|---|
| Minimum Entry Age | 18 Years |
| Maximum Entry Age | 65 Years |
| Policy Tenure | 2 or 3 Years |
| Add-Ons | Available |
| Waiting Period | 30 days (Initial) |
Long-Term Vs Short-Term Health Insurance Plans
Below mentioned are the differences between a long-term health insurance and a short-term health insurance plan.
| Parameters | Long-term Health Plan | Short-term Health Plan |
|---|---|---|
| Premium | Discounted premiums available for long-term health plans | Affordable health premiums for short-term health plans |
| Add-Ons | Available | Not Available |
| Tax Benefits | Available under section 80D | Available under section 80D |
| Renewability | Have to be renewed after 2 or 3 years | Have to be renewed in a few months |
Wrapping It Up
A long-term health insurance policy is your answer if you do not wish to undergo yearly health insurance renewals. In addition to that, you are offered a policy discount when you purchase a long-term health plan. However, you must remember that purchasing a long-term health plan will mean paying premiums for 2 or 3 years which may be difficult for some.
Before investing in a long-term health insurance plan, compare health insurance premiums with the PolicyX Premium Comparison Tool. For further information, connect with our PolicyX insurance experts.
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