Having health insurance is required, given the rising expense of healthcare. Most of the health insurance plans must be renewed annually. The annual renewal of the policy, though, might take a lot of work. Many health insurance firms now provide multi-year coverage to simplify this process and lessen the pressure of yearly renewals. A long-term health insurance policy protects for longer than a year. Such plans provide ongoing protection for two to three years.
Let’s look at a few benefits of a long-term health insurance plan.
- No Need To Renew Every Year: Renewal of one’s health insurance plans is among the most significant financial responsibilities one has each year. The policy will be cancelled unless the premium is paid on time. As a result, one needs to budget some cash each year for the policy’s renewal. One can spend a one-time premium to keep long-term health insurance coverage active for two to three years.
- Concession On Premiums: Because multiple years’ worth of premiums are paid simultaneously, long-term health insurance policies also enable you to save money. They cost less than annual policies as a result. Long-term health insurance plans lock in your rate for two to three years and do not allow for revisions. Long-term health insurance policies are becoming increasingly common because Bajaj Allianz insurance premiums frequently change each year. Customers also benefit from additional savings because any change in the product’s premium only affects current policies at the time of renewal. ##
- Tax Considerations: Regarding multi-year policies, the tax benefits are apportioned.
If health insurance premiums for multiple years are paid in one year, Section 80D of the Income-tax Act allows for proportional deductions over the applicable years. **
Premiums for a three-year family policy under 60 must be evenly spread, like a Rs. 90,000 premium. The deduction will be allowed each year, subject to the limitations under section 80D (as shown in the above table). You can use Section 80D to deduct Rs 30,000 annually in the scenario above. The insurers typically issue an 80D certificate mentioning the amount you can claim each year as a deduction under Section 80D. **
Opting for a multi-year health insurance policy can be a strategic approach to save on annual premiums. By committing to a longer-term policy, individuals can secure lower rates, enjoy increased financial stability, and avoid the hassle of annual Bajaj Allianz health insurance renewals. Evaluate policy terms carefully, considering your healthcare needs and potential life changes. Consulting with insurance providers and weighing the benefits and drawbacks will help individuals decide on their health insurance coverage. ##
Opting for a multi-year health insurance policy can be a smart financial move that offers significant savings on annual premiums. By committing to a longer-term policy, individuals can lock in favourable rates, avoid annual premium increases, and enjoy peace of mind with extended coverage. It’s essential to carefully assess your healthcare needs, compare policy options, and consult with insurance experts to determine if a multi-year health insurance plan is the right fit for you. Ultimately, it’s a strategy that can provide both financial benefits and long-term security for your health and well-being.
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** Tax benefits are subject to change in prevalent tax laws.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
