3 benefits of buying multi-year health insurance
Multi-year health insurance plans are more beneficial when customers do not want to renew every year or have to pay higher premiums in the following years.
Health insurance is an essential product to help protect you and your family financially in the event of unforeseen circumstances. The policy term of health insurance is quite short, usually about one year.
When the insurance policy expires, the insurance benefits also end. Participants need to continue to pay the annual fee to renew and maintain insurance benefits.
Besides, there is a fact that medical costs are increasing day by day, leading to an increase in insurance costs.
Buying insurance for many years (usually 2 – 3 years) requires higher financial conditions initially, but in the long run, it can be a more economical choice for you for the following reasons.
Medical expenses as well as health insurance tend to increase year by year. Image: Money Control
Avoid future premium increases
In addition to the inflation factor, the amount of insurance premiums will increase every year as you get older and your health gradually declines. Premiums for a 40-year-old can be 30 to 40% higher than for a 30-year-old.
Signing up for multi-year coverage allows you to lock in premiums over the next 2-3 years. This will help you avoid an increase in your premium if there is a future adjustment.
Do not have to renew often
Buying multi-year insurance from the start saves you the time to renew every year. The renewal process can become difficult and time consuming as life becomes increasingly hectic.
Not to mention, in the event of an incorrect extension, your protection benefits will no longer be available. In some cases, insurance benefits are not guaranteed after the end of the policy even though it is still within the renewal period.
Discounted insurance premiums
Insurance companies often offer discounts to customers who pay premiums for several years at a time. Discounts can often range from 7% to 15%, resulting in significant cost savings for customers. These discounts usually do not apply to customers purchasing a one-year health plan.
Le Huy (follow Financial Express)
at Blogtuan.info – Source: vnexpress.net – Read the original article here
