A long term health insurance plan refers to a plan that is bought for two or three years. A regular health plan usually covers you for one year. There are many benefits you get when you choose a long-term health insurance plan. Your premium gets locked in for the entire duration, though. Take a look at this article to understand how a long term health cover works and why it is useful for you.
Benefits of health insurance plans
Good health has a whole lot of benefits and we are all aware of them. Given the rate at which the healthcare expenses are rising, we simply cannot afford to live without a proper health cover. Let us quickly glance over the three main benefits of a health insurance plan:
- Makes quality healthcare affordable: If you have a health insurance cover, you can easily walk into the top most hospital and get the best possible treatment. Without the cover, doing this becomes a challenge, simply because the bills run up in lakhs. So you should have a health plan as you never know when an illness or injury can strike.
- Helps you prevent diseases: Most of the health plans have provisions for OPD visits and preventive health check-ups. This helps you to stay fit and fight off serious illnesses even before they can strike you fatally. It has been seen that people who have health insurance and use it effectively are healthier compared to those who don’t.
- Keeps your whole family protected: A family health insurance plan covers not just you, but all the members of your family. This is helpful because as a responsible family head, you would always want your loved ones to stay fit and secured.
Why choose a long term health insurance plan?
Like mentioned above, a long term health cover keeps you under the insurance umbrella for two or three consecutive years. Some of the advantages of this type of health insurance include:
- Protection from premium inflation: When you renew your regular health plan after one year, you pay a higher premium for the following year. Health insurance premiums increase every year. When you buy a cover for three years, the premium is locked in at the price of the first year for the next 2 or 3 years depending up on the type of health insurance you buy. This helps you save a considerably large amount of money.
- Discounts: Since you remain a fixed customer for the entire duration of three years, the insurance company offers you a discount. This further brings down the premium rates and helps you make a large profit on your health insurance cover.
- No renewals/lapses: A health insurance plan lapsing is a very common occurrence. Many a times the policyholders simply forget to renew the policies on time and this leads to the lapses. When you buy a long term cover, you can forget about this problem as the plan doesn’t need any renewals and thereby won’t lapse for a long time.
Advantages of term health insurance
Term health insurance plans are short term health insurance plans that help you stay protected during a time of transition. In other words, you can buy a term health cover when your long term health plan expires and you apply for a new plan. Generally, the insurance provider puts you through some health tests, etc. These take time and the new health insurance policy is not issued instantly. To stay covered in the interim, a term health insurance plan proves to be highly advantageous. The term plans are cheaper and you can make a claim if you happen to fall ill within the term.
In a nutshell
To put it in a nutshell, health insurance has a lot of benefits. Whether you choose a regular plan, a long-term plan or a term plan, health insurance can bail you out of a sticky situation in a very easy manner. The different types of health covers have different objectives but the main aim remains the same – to cover your health expenses. Analyse your requirements and choose a health cover wisely. Keep an eye on the cost of the plan. A high cover is ideal, but the premium should remain affordable too. So without any further adieu, log on and compare the various options and choose an excellent health insurance plan yourself.