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Benefits of securing your health with a multi-year health insurance policy

Benefits of securing your health with a multi-year health insurance policy

Benefits of securing your health with a multi-year health insurance policy
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By CNBCTV18.com Contributor Oct 10, 2022 1:55:26 PM IST (Updated)

The benefits of getting a health insurance cover are immense. It signifies wise financial planning that safeguards you from getting a dent in your savings from hefty medical bills that can come due to any possible future medical emergency.

Rising medical costs and growing awareness around health and well-being have amplified the need of a Comprehensive Health Insurance policy for a secured future. The benefits of getting a Health Insurance cover are immense. It signifies wise financial planning that safeguards you from getting a dent in your savings from hefty medical bills that can come due to any possible future medical emergency.

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Only about 4 percent of Indians have a personal health insurance policy. At this juncture, considering the rising medical costs and premium efficiencies, a multi-year plan can be the best choice for a secured and healthy future.
Enumerated below are a few benefits that comprehensive multi-year Health Insurance policies get to you:
Comprehensive Hospitalization Cover
Unexpected hospitalization costs often cause a big dent in the savings of a family and having a Health Insurance policy that covers not only in-patient care hospital bills but also other costs including pre and post hospitalization, opd expenses or cost of ambulance becomes the first and important component of any health cover.
Rise in Inflation
As per a Motilal Oswal report, India has registered a medical inflation of 14 percent in 2021. To add to this, our sedentary lifestyle is only making us more prone to serious and long term lifestyle ailments. Heart diseases, diabetes, obesity and many such medical conditions are becoming very prevalent now.
This means, that soon the treatment for these long tailed lifestyle ailments will become unaffordable. Hence, a majority of customers who get their health covered are finding a multi-year Health Insurance plan more convenient, viable and beneficial to secure them against this steep rise.
Lock in premiums, avail discounts and easy EMIs
A multi-year policy allows you to lock-in your premium at once, securing it from inflation and rising costs. Moreover, you can avail significant discounts if you buy a policy for a longer duration. Typically, there are insurers that give 7.5 – 10 percent discount on premium if it’s for a multi-year policy.
As a process, this is cost effective as compared to annual plans which require timely renewals. Additionally, flexible EMI options make a multi- year policy further preferable for policy buyers.
Eliminate the hassles of annual renewals
This is a major benefit of opting for a multi-year Health Insurance plan. Under this, your plan extends for duration of 2 - 3 years. You can pay the premium at once and add to your convenience. This eliminates the scope of missing renewal dates or deadlines and safeguards you from losing the continuity benefits of your health policy.
Increase in Sum insured
There are Health Insurance products in the market which give you a bonus for each year if no IPD claim is made in the multi –year policy. This bonus can go up to 150% of Sum Insured over a 5 year period. This benefit can therefore go a long way in ensuring that you have a comprehensive and exhaustive health cover with abundant Sum Insured when the hour of need arises.
Automatic Recharge of Sum Insured
A health emergency can arise anytime and potentially exhaust the entire Sum Insured that is available. In such cases, features like Automatic recharge of Sum Insured help reinstate the Sum Insured back to the original levels by providing that much needed additional cover which can be used for any other claim during the remaining policy tenure.
A multi-year Health Insurance policy thus provides with varied benefits to secure your future in a cost-efficient and convenient manner. Choosing this can safeguard you from the financial stress of health exigencies and also pave the way for wise financial planning.
The author, Ajay Shah, is Director and Head, Retail Business at Care Health Insurance. The views expressed are personal
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