Why do you need a health insurance policy? It is because lifestyle diseases like diabetes are on the rise. The treatment of critical illnesses is out of reach of the common man, especially in large metro cities.
Health insurance can be availed for one year or 2-3 years. Policies that are issued for 2-3 years are considered to be long-term health insurance policies. What are the benefits of long-term health insurance plans? Let’s take a look.
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Long-term health insurance policies are cheaper than normal health insurance policies, as they are offered for a longer tenure. When you buy a health insurance policy for a year, you have to renew it within a year. There is a possibility that customers will switch to other health insurers when the policy term is over. When you purchase health insurance for 2-3 years, insurers offer a discount as you are a long-term customer. The premiums for normal health insurance policies are revised in tandem with medical inflation and other criteria.
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Health insurance is offered to people with pre-existing diseases after a waiting period. Based on the severity of the disease, the waiting period differs. It will be 2 years for some diseases and 4 years for others. A waiting period of 2 years is set for ENT disorders, osteoporosis, hernia and so on. Here is an example.
Mr Raghav is suffering from hernia and he wants a health insurance plan. He approaches an insurance company and discloses honestly, the present medical conditions. He buys a one-year health insurance policy with a waiting period of 2 years.
After a year, if he wishes to change the insurer, a waiting period of 2 years is again imposed. If he had availed a long-term health insurance policy, it would not have been possible to change the insurer after a year. He would have continued with the same plan. Even though you are suffering from pre-existing illnesses, the chances of claim settlement are high.
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Health insurers are reluctant to offer health insurance policies to the elderly. This is because the elderly are prone to chronic diseases and the chances of a claim are high. For the elderly, it is desirable to buy a long-term health insurance plan. Why? Here is an example.
Shyam is 59 years and seeks health insurance. If he avails a health insurance policy, he has to renew it after a year and by then he turns 60. What if the insurance company denies him a new health insurance policy? So, the elderly must avail a long-term health insurance policy to be on the safer side.
Get an international long-term health insurance policy, if you are planning to work in different countries. If you fall sick abroad, healthcare is very expensive. Religare Health, Max Bupa and Cigna TTK and other insurance companies offer such policies. If you get an international long-term health insurance policy, you do not have to worry about health coverage.
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Premiums are stable in case of long-term health insurance plans. Stable premiums help plan finances. People who avail normal health insurance policies may not get the same cover each year. Just to save a few rupees, they may have to comprise on high-quality healthcare. This is why long-term health insurance policies are more beneficial vis-a-vis normal health insurance plans.
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