July 19, 2024

Long-Term Health Insurance: Meaning, Benefits And How To Select The Right Plan

3 min read
Health Insurance

With the ongoing surge in medical expenses, healthcare has become unaffordable for many, and costs are expected to keep rising. In this scenario, an online health insurance policy becomes a pivotal element in your financial portfolio, providing financial relief by covering hospitalisation expenses for you and your family. These policies require annual renewal to ensure continuous coverage, and timely renewals can lead to lifelong renewability for all health insurance plans.

Long-term health insurance policies offer extended coverage for a fixed duration, distinct from annual contracts. Do you comprehend the purpose of these long-term insurance plans?

What Is A Long-Term Health Insurance Policy?

A long-term online health insurance policy is provided for two or three years. When you purchase the plan, you must pay the total premium for the duration of the coverage all at once. The long-term policy then offers continuous coverage for the specified duration without requiring yearly renewals. Claims are subject to terms and conditions set forth under the health insurance policy.

Advantages Of Purchasing Long-Term Insurance Policies

Here is a quick guide to the advantages of Bajaj Allianz health insurance policies

  • You are relieved of the hassle of renewing the policy each year.
  • You are guaranteed long-term coverage that won’t expire during the coverage period.
  • Since you pay a higher premium upfront to purchase the policy, you can claim a larger tax deduction in the year you are buying the long-term insurance plan. **
  • When purchasing a long-term health insurance policy, you can receive premium concessions.
  • Long-term health insurance policies typically cover pre-post hospitalization expenses. This means that medical costs incurred before and after hospitalization, such as diagnostic tests, consultations, and recovery expenses, are included in the coverage.

How Can I Pick The Ideal Long-Term Insurance Policy?

In the market, there are numerous long-term health insurance plans. As a result, you should be careful about the product that you choose when purchasing a policy for yourself. When selecting the ideal long-term insurance plan, the following elements should be taken into consideration:

Select A Comprehensive Range Of Coverage

You should pick a health insurance plan with the most coverage benefits to cover all medical costs because different health insurance plans allow various coverage health insurance benefits.

Avoid Sub-Limits

There may be rent sub-limits under some long-term health insurance plans. These sub-limits restrict the amount of coverage available, and if you are admitted into a room with a higher rent, the total amount of your claim will be less.

Compare The Premiums To The Coverage

To compare apples and oranges is foolish. Therefore, you should always compare the premiums to the coverage the plan provides when evaluating health insurance options.

Look At The Network Of Hospitals

You must be admitted to a network hospital affiliated with the insurance provider if you want to take advantage of cashless treatments. When dealing with non-networked hospitals, claims are resolved through reimbursement, placing an unnecessary burden on your finances. Claims are subject to terms and conditions set forth under the health insurance policy.

Consider Deductibles

Evaluate policies with deductibles, which are the initial amounts you need to pay before the insurance coverage begins. Choose a deductible that aligns with your budget while keeping in mind its impact on premium costs.

Assess IDV (Insured Declared Value)

For non-life insurance policies, such as motor insurance, consider the IDV. This represents the maximum amount the insurer will pay in case of total loss or theft. Choose an IDV that accurately reflects the value of the insured property.

Explore Add-ons:

Assess the availability of add-ons or riders that enhance the coverage of your policy. Common add-ons include critical illness riders, maternity coverage, and accidental death benefit riders. Choose add-ons based on your specific needs and preferences.

It would help if you always compared long-term insurance policies to find the one that suits your needs while considering all of these factors. Ensure the plan covers every family member, and choose an insurance amount to cover the anticipated medical expenses.

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*Standard T&C Apply

**Tax benefits are subject to change in prevalent tax laws.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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