Gone are the days when going to hospitals was an affordable task. These days a single trip to the hospital for a major ailment is enough to deplete all your savings and leave you worried about the future of you and your family. To safeguard against such an eventuality, getting a comprehensive health insurance policy is the best option. A reliable health insurance policy can take care of both planned or emergency hospitalization and may even offer cashless treatment options greatly reducing the impact on your finances. When choosing a health insurance policy most people these days also favor the long-term health insurance plans that come with various benefits. Let us understand these plans in detail.
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What is long term health insurance plan?
As evident by the name, the long-term health insurance plans offer insurance benefits to the policyholder beyond the usual duration of one year. You can choose the duration of the insurance plan when buying the policy which may go up to 2 to 3 years or even more.
Advantages of long-term health insurance
- Freedom from running out of coverage:Most health insurance plans that come with one-year coverage need to be renewed while the plan is still active. Otherwise, once the plan’s duration finishes, you may not be entitled to enter any new claims and this can pose serious problems if you have missed the renewal date for any reason. With the long-term plans, you do not have to worry about recharging the plan each year and enjoy continued coverage through the years.
- Discounted offers: As you are continuing your plan for a longer period of time, the insurance provider can likely offer you some discounts. The per year cost of the long-term insurance plan is usually lesser than the annual health insurance plans by the same insurance providers. You may also go and explore the various long-term insurance plans on offer and verify them yourself. Comparing them to short-term insurance plans at a website such as IIFL is also a great idea to research the best plan for you.
- Inflation proof: The inflation and market fluctuation may push up the prices of the insurance plans. Also, government taxations and other economic factors can impact insurance prices. These fluctuations do not affect your insurance price as much if you simply purchase an insurance plan of a longer duration. Your insurance premium will be locked at one amount and nothing will change it before the end of the insurance plan term.
- Better NCB: No-Claim Bonus or NCB is a discount that is offered instead of not having an insurance claim during the policy term. When you have a long-term insurance plan your NCB accumulates and you get better discounts on the renewal of the insurance policy compared to the insurance plans of the shorter term. Since the policy term is longer the insurer may even allow smaller claims to be processed without impacting your NCB bonus. To know greater details regarding NCB, read your policy document carefully, as it may differ from one company to another.
Choosing the right long term health insurance plan for yourself
You can go to a website such as IIFL to browse and compare the various health insurance plans including the long-term insurance plans. This enables you to easily research the available plans according to your requirements and choose the one that fits the best. You can also use the calculator option on the IIFL website to choose the plan duration, coverage, and calculate the premium amount so that you can make an informed decision. Choosing an insurance plan for a longer-term can be a great decision for your financial well-being.