Hyderabad : Medical expenses have increased tremendously compared to two years ago. We are seeing incidents of minor illnesses costing lakhs of rupees. Hence health insurance has become a mandatory requirement. At the same time, insurance companies have increased this premium once. It is clear that the premium has increased by 15-30 per cent for policies this time compared to a year ago.
A large number of health insurance policies were taken when covid came. Now is the time to renew them. In this background, many people are doubting whether it is better to pay a premium for two years or three years at once. Let's know the answer to this. If you opt for annual premium policies, you will have to pay an increased premium from time to time. Paying the premium at one time for two or three years will reduce the burden.
* Increased premium: When the premium is paid annually, the increased premium has to be paid. Insurance companies usually increase their premiums quite a bit every year. If you don't want the increased burden to be so much, you can take long-term policies. The premium amount is paid in advance. Therefore, even if the premium increases, the policyholders will not have to pay that amount because they already paid the premium in advance.
* Concession: Paying the premium for two or three years at once is burdensome compared to an annual policy. But, insurance companies are giving a discount of up to 10 per cent to those who pay the premium in advance. Depending on the insurance company, it varies.
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* In instalments: Insurance companies also give some flexibility without the hassle of paying a high amount of premium. This facility can be availed if required. Not only for long-term policies. EMI can also be used in case of paying an annual premium.
* Non-stop: In certain special circumstances, the policy may not be renewed. In case of loss of income, illness, accidents etc the policy may have to be stopped due to financial difficulties. If there is a long-term policy like this, it will last for years. If you choose a long-term policy when you have money in hand, you can ensure that the premium is not burdensome.
* Tax Benefit: The premium paid for an annual health insurance policy is exempt under Section 80D of the Income Tax Act. This is not a problem when taking a long-term policy. For example, suppose you pay a premium of Rs 45 thousand for a three-year policy. Then a tax deduction of Rs 15 thousand per financial year can be availed. The insurance company will provide you with a Section 80D certificate. Those opting for the new tax system need not show exemptions.
Keeping in view the rising medical expenses, your health insurance policy should be comprehensive. Don't forget that only then will it protect you completely. At the same time, the policy should be taken from an insurance company with a good payment history.
