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Why opt for a Multi-year health care insurance policy?

People often neglect health care insurance policies, especially in Southeast Asian countries like India and Pakistan and other underdeveloped countries. They used to have a strong faith that nothing could happen wrong and that paying premiums for health insurance was just an additional financial burden. However, after the pandemic hit the world and people had to pay substantial medical expenses and hospital bills, they realized the importance of medical insurance policies. Because of this, there is a drastic increase in demand for health care policies.

Besides Covid’19, there is a constant rise in health problems due to increased global pollution and people’s unhealthy lifestyle. Hence, the need for a medical insurance policy will continue to grow even after the coronavirus vanishes from the earth.

Masses are much educated about the benefits of health care insurance policies for the whole family as they are experienced in paying hefty medical bills. But people are often confused about whether they should opt for a single-year or a multi-year health care insurance. We advise people to go for a multi-year health care policy. In this article, we inform you related a few benefits to support our opinion.

Avail premium discounts

Insurance policy sellers usually offer discounts on monthly premiums to customers interested in buying the multi-year policy as they get into a long-term contract with a respective customer. The offered discount on premiums is often around 7% to 15%. This enables the multi-year policy customer to have some extra savings in their monthly income. Such deals are not generally provided to customers looking for a year insurance policy.

Enjoy Tax Benefits

According to a few resources, people who buy multi-year insurance policies can enjoy more tax benefits than single-year policyholders. For example, in India, a new ruling has been passed. Following it, under section 80D of the Income Tax Act, citizens can avail of the tax benefits of up to Rs 25000 in monthly premiums in a year for themselves and their family members. However, under a multi-year health insurance plan, a one-time bonus can be proportionately split each year to avail of the maximum tax benefits. For example, if a person pays a premium of Rs 36000 for a three-year plan, he can enjoy a tax emption of Rs 12000 yearly.

Avoid inflation

Global inflation is at its peak and continuously increasing annually, pushing the prices of all commodities upward. Therefore, the cost of health care policies will also rise over time. By opting for a multi-year insurance policy, the holder can avoid the effect of inflation on his monthly premiums as a multi-year insurance policy locks the price of monthly premiums for the next two to three years. On the other hand, single-year policyholders have to bear the burden of inflation in the form of increased revised prices of premiums over the years.

Lock-in Advantage

The price of monthly premiums for a 40-year-old person can be 30% to 40% more than what is offered to a 30-year-old person. As the person ages, the premium amount increases simultaneously. And as the multi-year insurance policy locks the monthly premium expense, choosing a multi-year plan allows the holder to enjoy the lock advantage for the next 2-3 years. This, in turn, will help the holder escape potential annual raises in premium costs.

Escape from every year’s hassle

Multi-year health policyholders are prevented from the hassle of revising, reviewing, and bargaining the policies from the seller. The multi-year policy provides peace to the holder for the next two to three years as all the terms and conditions remain unchanged over the policy’s tenure.


Health care policy is essential for every family, and choosing a multi-year medical insurance policy provides additional perks over single-year policies. However, multi-year insurance policies are suitable for people who can afford to pay a hefty amount of money in one go.
A health insurance plan should be considered your friend for a lifetime. Multi-year or not, the importance of a health insurance plan cannot be ignored and should be your top priority.

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