- Explore Policy Period
- Defining Policy Period in Health Insurance
- Minimum and Maximum Policy Periods
Policy Period in Health Insurance: An Introduction
Selecting the coverage period for your health insurance is as important as choosing affordable premiums. Time is an important factor when comparing health insurance plans. Your policy coverage benefits and features change with the increase or decrease of the policy period.
Policy period in health insurance is an important aspect affecting premiums, coverage features, offering multiple benefits, and more. In this article, we explore how?
What Is the Policy Period In Health Insurance?
The policy period in health insurance is the period during which your health insurance provider will cover you against medical expenses. You are free to choose your policy term for:
- 1 year
- 2 years, or
- 3 years
Health Insurance policy period may vary from insurer to insurer. It entirely depends on you to select the policy period and after the completion of said period your health cover lapses until renewed.
How Does Policy Period Affect Health Insurance Premiums?
Let us understand how choosing the right policy period affects health insurance premiums through an example.
Ankit purchased a health cover of INR 5 lakhs at annual premium price of INR 8,000
- If Ankit purchases his health policy with a policy period of 1 year, he will pay INR 8,000 during the policy period. The premium might increase at the time of renewal, as per the terms and conditions at the time of renewal.
- However, if Ankit opts for a 3-year policy period, the health insurance provider will offer him a long-term discount in overall premiums. Instead of paying INR 24,000 for 3 years, Ankit may pay only INR 21,000 after the long-term policy discount given by the health insurance provider.
- Additionally, Ankit will not be affected by health insurance premium revisions done by the insurer. He will be insured at a premium price of INR 21,000 for 3 years regardless of the policy premiums increasing from INR 8,000 to 9,000.
Minimum And Maximum Policy Period In Health Insurance
The minimum policy period in health insurance is 1 year. When purchasing a health insurance plan, you will have to purchase a health insurance plan for at least 1 year.
Whereas, the maximum policy period in health insurance may vary from insurer to insurer. The maximum policy period in India is up to 3 years.
Things To Consider When Choosing A Policy Period
Consider this as your checklist when selecting your ideal policy period in health insurance:
-
Your Age and Health Status
If you are in your early 20s you can opt for a 1-year policy term, as premiums are comparatively cheaper in your 20s. You must consider selecting a longer policy period in your 30s and 40s as health insurance premiums will not be so cheap anymore. -
Health Policy Premiums
Selecting a health insurance policy period for 1 year will result in a higher premium against a 2 or 3 year policy period. Long-term policy periods in health insurance ensure discounts provided by health insurers. -
Your Budget
When opting for a policy period in health insurance, you must consider your health insurance budget. Make sure to choose a policy period and premium payment mode that fits your pocket and you can pay premiums easily without the need to miss on premium payments. -
Renewability of Health Insurance
Most health insurance policies are renewable which means you can renew your health plan after 1 year of the policy period. However, many health insurance plans are not renewable, consider renewability when selecting a policy period in health insurance especially if you are purchasing it for a senior citizen. -
Family Health Plan
Policy period in health insurance must be considered when selecting a health plan for your family. Most family consists of members of various age groups, you have no idea when someone might need health insurance coverage, so why take the risk? When purchasing a family health plan, always aim for a maximum policy period. This ensures that all family members are always covered under the umbrella of an active health insurance plan.
Concluding Note
Selecting a policy period in health insurance is as necessary as selecting the sum insured, or premium prices of a health policy. It can save you big bucks and protect you from premium revisions done by your health insurance provider.
Confused still? Connect with our insurance experts to understand the ideal policy period in health insurance for you and your family.
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Policy Period In Health Insurance: FAQs
1. What is the policy period in health insurance?
The policy period in health insurance is the time duration during which a health insurance provider covers you and your family against planned and emergency hospitalization, along with other medical necessities.
2. What is the ideal policy period for me?
Selecting a policy period is as essential as selecting the sum insured, and features. The policy period in health insurance varies as per individual needs. You can choose between 1 to 3 years of the policy period.
3. How will my policy period affect policy premiums?
Policy period affects health insurance premiums as long-term policy periods offer policyholders long-term discounts in their overall premiums making it affordable for you.
4. What is the minimum policy period in health insurance?
The minimum policy period in health insurance is 1 year.
5. What is the maximum policy period in health insurance?
The maximum policy period in health insurance varies from insurer to insurer. Generally maximum policy period in health insurance goes up to 3 years.
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Written By: Simran Kaur Vij
Simran is an insurance expert with more than 3 years of experience in the industry. She may have all the answers to your insurance queries. With a background in Banking, she proactively helps her readers to stay on par with all the latest Insurance industry developments.
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