9 benefits of opting for long-term health insurance cover

By July 2021, the Covid-19 virus infected nearly 200 million people across the globe causing over 4 million casualties. It ushered the importance of health insurance even further.

With the rising need for an effective health plan, long term health insurance has come in the spotlight. Unlike regular plans, a long term cover offers many additional benefits.

A long term health insurance was conceptualised to protect one's health as well as finances. It is offered for a period of 2-3 years and saves the time and cost of annual renewal.

While the premium for such plans is normally paid at once, some insurers do offer the flexibility of paying in installments. This lets you enjoy the benfits of long term plans while you pay the premium at regular intervals.

Insurers are happy to offer discount for a multi-year plan. You can also prevent any revision in the premium amount during the course of the policy. Besides, the no-claim benefit is added annually in such plans.

Since the time period for long term plans is minimum of 2 years, it saves you the hassles of paperwork for annual renewals. You stay financially secure against any healthcare expenditure until the policy is alive.

As per section 80D of the Income Tax Act, you can claim deduction in taxable income against the premium paid for the policy. If the premium is paid at once, one can claim a larger sum in a single year.

If you are below 60 years of age, a deduction of up to Rs 25,000 can be claimed for yourself, spouse and kids. An additional deduction of up to Rs 50,000 can be claimed if you also cover your senior citizen parents. Thus a total deduction of Rs 75,000.

If you opt for a long term health cover, the insurer may give you the option to cover pre-existing illnesses from the first year itself. Most policies don't cover such illnesses unless a higher premium is agreed upon.

The family floater plan covers hospitalisation expenses, doctor's consultations, ambulance services, treatment charges, and pre and post hospitalisation expenses for the entire family

These plans come with multiple sum insured options ranging from Rs 1 to Rs 1 crore. You can explore plans from various insurance companies and buy a plan after comparing rates across the spectrum.