With health insurance premiums rising every year, individuals should buy a cover for an extended term —three to five years —to protect against medical inflation. For youngsters, it is especially helpful as they can secure affordable premiums for multiple years and avoid potential hikes as they age.
In a multi-year policy, there is no hassle with annual renewals. Policyholders can choose to pay the premium in EMIs for a multi-year policy, and it won’t impact the discounts they receive. This option provides flexibility with payments, easier to fit into their budget while still allowing them to enjoy the cost savings of a multi-year plan.
Locking a fixed premium
By locking in a stable premium rate over an extended period, policyholders gain greater financial predictability. This allows them to plan and budget for their healthcare costs without the stress of unpredictable annual hikes.
Siddharth Singhal, head, Health Insurance, Policybazaar, says multi-year health insurance policy is useful for youngsters as they face fewer health risks and paying upfront at a fixed rate can lead to significant savings. “It is also worth noting that multi-year health plans offer discounts up to 17-18%, which makes these policies even more cost-effective.”
Rakesh Goyal, director, Probus, an insurance broking firm, says in recent years, health insurance premiums have risen significantly, making coverage increasingly unaffordable for many.
“A multi-year policy avoids the hassle of renewing the policy each year and safeguards a policyholder from future premium increases, offering long-term stability and peace of mind.”