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A fact that is hard to accept today is that healthcare has become more expensive than ever before. Moreover, the ever-increasing lifestyle-related illnesses and new diseases like COVID-19 have increased health-related uncertainties. In this scenario, getting a health insurance policy proves to be a blessing since it enables one to bear the impact of medical inflation. In addition to providing comprehensive medical coverage, a health policy allows the insured to avail of the Section 80D tax benefits under the Income Tax Act.
Opting for a multi-year health insurance policy can be your best investment for the year. Let us discuss why getting a multi-year health policy is beneficial for you and your family:
Hassle-free Policy Renewal
Timely renewal of a medical insurance policy is essential to avoid losing the policy coverage and benefits. A prominent aspect of getting a multi-year health insurance policy is that it eliminates the need to renew your policy each year. You can stay worry-free and avail of the accrued benefits.
Lock-in Your Premium
Just as inflation has led to a rise in medical treatment costs, the health insurance premium rates increase every year. Multi-year health plans allow locking your premium amount at a fixed rate for a longer period. Therefore, you can save yourself from paying a premium at the revised rates. Also, you get to avail tax benefits for multiple years in turn, which further helps you save!
Avail Premium Discounts
One of the many benefits of health insurance plans is the discounts they offer. Compared to a one-year health plan, multi-year policies come with premium discounts. So, with the advantage of not having to renew your policy annually, you can also look forward to growing your savings for the year.
Choosing ‘Care’, by Care Health Insurance, a comprehensive health policy for individuals and families, you can avail of a 10% discount with a 3-year policy and 7.5% discount with a 2-year policy.
Get Tax Benefits
Choosing a multi-year health insurance policy serves as a crucial part of your financial planning. You may have to spend substantially on the premium initially for a 2-year or a 3-year policy. That is one factor you should consider before choosing a multi-year policy. However, you can still enjoy some tax benefits without worries.
For the lump sum premium you pay for the multiple policy years, you become eligible to claim tax deductions proportionately. It implies that if you have paid Rs 45,000 for a 3-year policy, you qualify for a deduction of up to Rs 15,000 each year, subject to terms and conditions. Know about the eligibility for claiming the tax deductions to avoid any hassles later.
>> Also Read: Key Things to Remember When Claiming Health Insurance Tax Benefit
Takeaway
While health insurance provides comprehensive protection against various medical expenses, it also serves as the best tax-saving investment plan for your family.
Make the most of a multi-year health plan. Avail the best health plan by Care Health Insurance for you and your loved ones. Visit our official website to get a customised plan and pay the premium digitally through any secure payment mode, like net banking, debit card or credit card.
Disclaimer: The tax exemptions are subject to the rules and regulations of the Income Tax Act.
