Health Insurance: Get discount on premium for multi-year health policy

The policyholder can claim tax benefit of up to `25,000 under Section 80D for self, spouse and children year on year for the entire tenure of the policy.

With rising costs of medical treatment, it is better to opt for a multi-year health insurance policy which is cost-effective. Moreover, it will save the hassles of yearly renewal as failing to renew a policy every year will leave the individual and his family without any protection.

For a multi-year health insurance policy, typically for three years, the insured has to pay the premium in one go and the insurance companies offer a discount of 10-15% on the premium amount. The savings can be substantial in the long run as most plans offer a lifelong renewal option.

The policyholder can claim tax benefit of up to `25,000 under Section 80D for self, spouse and children year on year for the entire tenure of the policy. The premium can be paid in EMIs, thus reducing the burden to fork out a large sum of money at one go.


Fixed premium
As the premium is fixed for the entire tenure of the policy, one does not have to worry about any periodic price escalation in the premium either due to medical inflation or increase in age of the policyholder or change in lifestyle. After the completion of the policy term, it can be renewed again. If there are no claims during the policy term, the insured will get the benefit of no-claim bonus. Insurers offer multi-year health insurance policy on both standalone and family floater basis.

Avoid porting

In case a policyholder is not satisfied with the services of the health insurance company and wants to port a multi-year policy during the term, the policyholder will lose out on the premium paid as health insurance portability is allowed during the policy renewal time only.

So, if you are planning to buy a new policy, opt for a comprehensive multi-year health insurance plan and stay covered for an extended period of time.