Buying a health insurance policy is safeguarding one’s finances for future use. But how far in the future should one plan? Usually, a health insurance policy, similar to short term car and bike insurance policies, are valid for the duration of one year. You can remain stress-free for a period of one year in case of medical emergencies. However, one can increase the stress-free-duration for more than a year with the help of long-term policies.
In this article, we will discuss what long term health insurance policies are and what are their benefits over short term health insurance policies.
What is long term health insurance?
As the name suggests, the tenure of a long-term health insurance plan is more than the usual duration of 1 year. It can be multiple years starting from 2 to 3 years of a single health insurance plan.
Benefits of buying a long-term health insurance policy
1. Duration of Coverage
Opting for a long-term health insurance plan instead of a short one has its own set of benefits. The very first one is that your health insurance coverage remains intact for more than one year. You do not face the negative effect of not renewing your health insurance plan in time. You don’t have to remember the date every year also.
When you select a long-term health insurance plan, the insurance company may offer a plan at a discounted health insurance premium. You may pay less premium for a long-term plan as compared to the one with a shorter duration.
3. Market Price
Similar to any other product in the market, the price of a medical insurance policy may undergo changes. These could be due to factors related to you, for example, addition or deletion of add-ons, or due to some things that are beyond the control of a policyholder, for example, price hike by IRDAI. IRDAI is the apex body that regulates general and life insurance in India.
When you opt for a long-term policy, you pay in one go for the next 2 to 3 years depending upon the tenure. This helps in locking the health insurance premium at one amount. Thus, you will not be affected by any change in the market price for the next 2 -3 years.
NCB stands for No Claim Bonus, this is a discount awarded to the policyholder at the time of renewal if no claims were raised in the previous policy period. NCB in long term policy is higher than the NCB of a short-term policy. Plus, a couple of claims are also allowed in this case without disturbing the NCB cycle. This way, one is benefited on two levels – 1. Claims are allowed 2. NCB remains intact. However, do not forget to read the terms and conditions related to NCB in your medical insurance policy to know the exact details specific to your insurance company.
How can I buy the best long-term health insurance policy?
To buy the best health insurance policy you should go online. You can do a few additional and useful things when you opt for the online method. The very first thing is to know your requirements and expectations from your insurance policy. Consider things like the amount of sum insured you need, the number of add-ons that will be useful for you and your family, the feedback of your insurance company etc. Then compare policies that suit your requirement. Select the one that is economical as well as rich in features. In this manner, you will purchase the best policy in no time and well within your budget.
Plan in advance. Secure for finances for the future!
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