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

There are many benefits of buying long term major medical health insurance. Here is the list of advantages:

  • Hassle-free renewal

With a long term health insurance plan, you can stay protected for two to three years. So, you are saved from the hassle of renewing your policy after every year. Renewing your policy every year can be stressful as you have to remember to pay the premiums on time. If you forget to renew your policy, you might be left without coverage, and that can lead to problems if you are faced with a medical emergency once the policy has lapsed. Therefore, with long term insurance, you can ensure you are protected for a longer period of time without any hassles.

  • Income tax benefits

With a long term health insurance plan, you can avail of tax benefits under Section 80D of the Income Tax Act. In addition, you can avail of tax deductions on the premium you have paid towards the long term health insurance in India. Thus, this is one of the most convenient options that will help you save tax and enjoy the benefits.

  • Discounts on premiums

When you buy long term health insurance in India, the insurer might offer you discounts on the premium that you will pay towards the policy. So, you might have a lower premium when you buy a long term insurance plan than you will pay for a typical one-year mediclaim insurance plan. With Tata AIG, if you purchase the MediCare or MediCare Protect health insurance plans for a period of two years, you can get a 5% discount on the premium. Similarly, if you opt for a three-year Tata AIG MediCare or MediCare Protect health insurance plan, you can benefit from a 10% discount on the cost of the policy.

  • No Claim Bonus

NCB is the reward that you get if you do not file any claims during the policy tenure. The NCB offered for long term health insurance plans is higher than that offered for one-year health insurance plans. Also, you might be allowed to make a few claims while keeping your NCB intact if you have a nursing care insurance plan. However, it is essential to read the terms and conditions stated in the policy when it comes to filing claims and understanding how the NCB works in the particular plan that you have chosen.

With Tata AIG, for every claim-free year, you can receive an NCB between 10 to 100 per cent on the sum insured, depending on the insurance plan that you have purchased. With this, your sum insured increases without paying any extra premium.

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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