Long term health insurance is a type of insurance policy that has a longer validity period as compared to regular health policies. Usually, regular health insurance policies offer coverage for just one year. In contrast, the validity of long term medical insurance can be around 2 to 3 years.
This longer coverage period allows people to lock in rates and not have to shop for new insurance annually. It provides more predictability in health expenses from year to year. Some long-term plans also have options to renew without new underwriting at the end of the policy term. This can be beneficial for those with chronic health conditions to maintain coverage.
Unlike Travel Insurance, which is needed only for a specific travel period, health insurance is a cover that is required at all times to face the financial consequences of unpredictable medical emergencies. That being the case, it is beneficial to buy long term health insurance so that you are covered for multiple years in one go. By doing this, you will save a lot of time, effort and money! Long-term health insurance provides stability and assurance that your family is protected in case medical issues arise over time. You can set it up and not worry about scrambling to renew policies every year. In addition, long-term plans allow insurance companies to spread out costs, which translates to lower premium rates for the consumer. When safeguarding your family's health and finances, a long-term health insurance plan is a smart investment that reduces stress and risk. Read the next section to know how.
Here are some of the benefits of opting for a long term health insurance policy. Exact benefits can vary from insurer to insurer and plan to plan.
A usual health insurance plan relieves you of the financial stress of medical care for a duration of a year. Possessing long term insurance, on the other hand, can keep you stress-free in this regard for up to two or three years.
Health insurers usually offer discounts on the policy premium for long term health insurance plans. Hence, buying long term insurance with a policy duration of two to three years is more cost-effective than renewing insurance every year for the same duration.
Your accumulated No Claim Bonus (NCB) (or policy renewal benefit) can be lost if you do not renew your policy on time. However, if you opt for long term insurance, you do not need to worry about losing such benefits for at least two or three years.
The premium charged for health policies can be revised periodically. Buying a health insurance long term policy can help you avoid these hikes and safeguard your hard-earned money.
Under Section 80C of the Income Tax Act, you can claim tax exemptions on the premium paid towards long term health insurance.
A long-term policy ensures continuous health insurance coverage for 2-3 years without gaps. This gives you peace of mind, knowing that even if you forget to renew on time, your coverage will not lapse.
Long-term policies allow you to lock in health insurance premium rates for the policy tenure. This protects you from premium hikes over the next few years.
Long-term policies usually work out cheaper than single-year policies bought multiple times over the same period. The discounts offered make them more value for money.
The following are the disadvantages of opting for long term health insurance plans.
Securing long-term health insurance is an important financial decision that can significantly impact your future well-being. When choosing a long-term health insurance plan, there are several key factors you should carefully consider before committing. Here are these factors:
In this section, we will highlight the key reasons why you should consider opting long term insurance from ACKO. The following points are mentioned considering ACKO Health Policy (Rs. 1 crore sum insured) for a long term, which translates to ACKO’s Long Term Health Insurance Policy.
We currently provide insurance products to over 7.5 crore customers in India. Our broad customer base indicates the quality and trustability of our products, which also applies to our long term health insurance.
A good insurance company will usually have a good range of reputed network hospitals. ACKO has over 7,100 network hospitals, including some of the best in the country.
Usually, buying offline health insurance involves filling out numerous forms, submitting a long list of documents, and constant follow-ups.ACKO’s digital insurance processes help you avoid such hassles.
With our responsive website and customer-friendly mobile app, you can expect a smooth insurance journey. You can check out our General FAQ section anytime for common queries related to health insurance.
Usually, health insurance policies come with an initial waiting period and a waiting period for pre-existing health conditions. ACKO’s long-term medical insurance has neither. You can start making claims from day one onwards.
Usually, health insurance plans have cost-sharing clauses. Meaning, you will have to bear a portion of the medical costs during a claim. This can cause additional stress during a medical emergency. In contrast, ACKO’s long term policy has no hidden cost-sharing clauses. You can avail of 100% coverage up to the sum insured limit of Rs. 1 Crore.
Usually, health insurance plans do not cover ambulance charges. However, ACKO’s long term health plan offers coverage for ambulance trips from your house to the hospital, up to the sum insured limit.
Health plans usually have very narrow coverage.ACKO’s long term medical insurance, on the other hand, covers all medically required hospitalisation. The only condition is that you must submit your full medical history at the time of policy purchase.
Health plans usually have a cap on the room rent. So, you can choose rooms only within a certain budget. Under ACKO’s long term health insurance policy, there is no cap on room rent. So, you can choose the most comfortable hospital room for yourself and receive the best treatment.
With extensive sum insured, coverage for a number of years, and top-notch services, you shall receive the required insurance support in case of a medical emergency.
Yes, you can buy a health insurance policy that has a validity of more than a year. Such a policy is termed as a long term health insurance policy and usually has a policy duration of two to three years.
Yes, it is advisable to buy long term insurance as it is more cost-effective than its alternative in the long run.
Usually, long term medical insurance is not available for senior citizens specifically. Nevertheless, crosscheck if this is an inclusion or exclusion before buying a policy.
Long term medical insurance is usually purchased with a one-time bulk payment. So, you just have to pay once for the stipulated policy period.
Yes, usually long-term health insurance plans cover pre-existing medical conditions. Nevertheless, refer to the policy wordings of a long-term plan to find out if this coverage is an inclusion. ACKO’s long-term plan not only covers pre-existing health conditions, but it also offers zero waiting period for them. So, if you buy our insurance plan, you can claim against such conditions from day one, without encountering any delay.
A short term health insurance policy is a health plan that usually has a policy term of around a year or less.
Short-term medical insurance is priced lower than long-term medical insurance because it offers coverage for a shorter duration. However, it can be more economical to buy a long-term policy with a policy period of three years than to buy a short-term policy every year for three years.
You can select the best long term health insurance by browsing for different options online. Then, use the health insurance premium calculator tool to compare plans based on their cost-to-benefit ratio and choose the most suitable plan for you.
Yes, multi-year health insurance means the same as long-term health insurance. They both refer to a health insurance plan with a policy period of more than a year.
Disclaimer:
*Except for exclusions like maternity benefits, undisclosed diseases, etc. Please check policy wordings for more details.
**In case the pre-existing disease surfaces after a policy is issued. However, at the time of claim, if it is found that the policyholder did not disclose any known pre-existing diseases while buying the policy, the claim may get rejected.
