Long Term Health Insurance

  • Author :
  • TATA AIG Team
  • Published on :
  • 08/04/2022

With the advent of the pandemic, health has become one of the most talked-about topics. It has become essential to remain healthy by eating the right food and exercising regularly. But, medical emergencies do not announce themselves before they happen. A health insurance policy can benefit you immensely in this regard. With a mediclaim insurance plan, the insurer will take care of the emergency medical costs.

With a medical insurance plan, you can live your life without having to worry about the financial implications that can be caused by medical emergencies. With the exponentially increasing medical costs, having a health insurance plan has become ever more essential. But, having to renew a medical insurance plan every year can become a hassle; therefore, a long-term health insurance policy can help you in this regard.

We at Tata AIG offer different types of health insurance plans such as critical illness insurance, family floater plans, covid insurance plans, etc. So, understand your requirements and choose the right mediclaim insurance policy for yourself and your family to avail of the benefits of health insurance.

You can also use the health insurance premium calculator available on our website to know the premium that you have to pay for your health insurance plan. You can also use the health insurance premium calculator to know the premium that you need to pay towards the health insurance policy.

Let us now understand the details of a long-term health insurance policy and its benefits.

What is Long Term Major Medical Health Insurance?

Typical health insurance policies have a tenure of one year, after which you need to renew the policy to avail of its benefits. But, with a long term major health insurance plan, the tenure of the policy is two to three years. Therefore, you are saved from the hassle of renewing your policy after every year. Moreover, these plans might have a discounted premium over one-year health insurance plans.

If you are wondering what does long term care insurance cost? Long term health insurance plans might cost you less than typical health insurance plans at renewal as you do not have to pay the increased rate of premiums when you renew your policy every year. So, if the premiums are increased after one year, you will be immune to this increase. Moreover, the insurers also offer discounts for every claim-free year, also known as the No Claim Bonus.

Benefits of Long Term Health Insurance Plans

Below is a list of benefits that are offered by a nursing care insurance plan:

  • Discount on premium

One of the top reasons that people refrain from purchasing medical insurance is the high premium amount. Therefore, an affordable long term health insurance policy always appears more attractive to buyers. When you buy a long term health insurance plan, your plan gets locked in for two to three years. Thus, this makes the plan immune to any rise in the premiums. So, buying a long term health insurance plan can help you get a discount on the premium amount that you pay towards the policy.

  • Minimal paperwork

The duration of a long term health insurance in India ranges from two to three years, depending upon the insurer. This is better in contrast to the medical insurance policies that need to be renewed yearly. Thus, not only is this logistically better, but it also helps to reduce the expenses associated with paperwork quite a bit.

  • Hassle-free renewal

Having a long term care insurance means that you will be covered for two to three years when you buy a plan. So, you will not be required to renew your plan every year. This makes it less stressful as you do not have to worry about the premium amount every year at the time of renewal.

Also, you will not have to worry about any healthcare-related expenses that you incur in this period. Moreover, you will not have to remember the yearly renewal deadlines, which will make it easier for you as you will not have to stress about missing the renewal dates every year.

  • Tax benefits

One of the most important reasons for purchasing long term health insurance in India is availing the tax deductions. Under section 80D of the Income Tax Act, you can enjoy tax deductions against the premiums that you pay for a nursing care insurance plan.

If you buy long term health insurance for yourself and the members of your family, you can avail of a tax deduction of upto ₹50,000. Therefore, this is one of the best ways to save on taxes while at the same time financially safeguarding yourself and your family from any medical expenses that may arise due to a medical emergency.

  • Pre-existing disease coverage

When you purchase a health insurance plan, coverage for pre-existing diseases is something that is of utmost consideration. Pre-existing diseases refer to the diseases that the policyholder already suffers from at the time of purchase of the policy. There are many health insurance providers that do not offer coverage for pre-existing diseases in the short-term health insurance policies but offer coverage for pre-existing diseases in a long term health insurance plan depending on the terms and conditions.

Short Term vs Long Term Health Insurance

Let us understand the major differences between short term and long term health insurance plans:

Short Term Health Insurance Long Term Health Insurance
Policy Tenure The policy tenure is up to 12 months. The policy tenure ranges from two to three years.
Premium The premium is less than long term health insurance plans. The premium is higher than short term health insurance plans.
Pre-existing diseases Pre-existing diseases are not covered. Pre-existing diseases are covered after completion of the waiting period.
Renewability These have to be renewed every year These plans have to be renewed after two to three years.

How to Buy the Best Long Term Health Insurance Plan?

To buy a long term major health insurance plan, you must research different plans that are available online. You must understand your requirements, the premium that you can afford, and the tenure of the policy before you choose the right policy for yourself. Once you are done, you can compare different long term health insurance plans and buy the one that you think is the right one for you.

Conclusion

Long term insurance plans can be beneficial for you if you do not wish to go through the hassle of renewing your policy every year. For example, with nursing care insurance, you can get various benefits like discounts, tax deductions, and an increased No Claim Bonus. But, before you buy a long term health insurance policy, you must understand your requirements. With Tata AIG, the process of buying a mediclaim insurance plan is quick and easy. You can buy a health insurance policy in a few clicks and protect yourself against any financial liabilities that can be caused due to medical emergencies.

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