Long Term Health Insurance and Its Benefits

In India, several people, especially youngsters, avoid buying a health insurance policy, thinking it is an unnecessary and avoidable expense. However, health statistics suggest that nearly 15-20% of heart attack patients recorded in India are aged between 25 to 35 years.The sedentary lifestyle, which includes long hours of sitting continuously and lack of exercise, has made youngsters vulnerable to several lifestyle-related diseases like obesity, cancer, etc. Therefore, the experts recommend people buying a long-term long-term health insurance policy at a young age.It allows you to get the best medical care and reduces financial and psychological stress. But what is long-term health insurance? As the name suggests, long-term health insurance tenure is more than the standard policy of one year. You can buy a long-term policy for two to three years or more, which means you can stay protected for a longer period.

• A long-term health insurance policy keeps you protected for at least 2-3 years, which means you need not worry about healthcare expenses during this period. Once you purchase a long-term policy, you need not worry about renewing the policy every year; you need not deal with the renewal procedures.
• A long-term health insurance policy is necessary for all that also helps you reduce your annual tax liability. Under Section 80D of the Indian Income Tax Act, the premium you pay for the health insurance policy is eligible for tax deduction up to Rs. 25,000 in a financial year.
• Another significant benefit of buying a long-term health insurance policy is that you can get coverage at a lower premium. Like other financial products in the market, the medical policies' premium tends to change over time. So, when you opt for a long-term policy, you will not be affected by the market price for 2-3 years (depending on your policy duration).
• Coverage against pre-existing illness is an important factor to consider while buying a healthcare policy. It refers to the underlying conditions that you may have at the time of purchasing the policy. Most insurers in India extend coverage to pre-existing diseases under long-term health insurance plans after the waiting period.
• NCB or No Claim Bonus is a discount awarded to the policyholders who do not file for a single claim during a policy year. The NCB offered in the long-term policy is higher than the short-term policies. Besides, many insurers allow a couple of claims for long-term policyholders without affecting the NCB cycle.

Thus, you can benefit in two ways – you can file for a claim during the policy period, and two, your NCB benefits remain intact. However, make sure that you read the terms and conditions related to NCB.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.