Confused what type of Health Insurance to get? Long Term Insurance is the Answer

By Sakshi Srivastav - 09 Jul 2021 Last Updated: 18 Sep 2021
Confused what type of Health Insurance to get? Long Term Insurance is the Answer

Given the overall inflation rate for just about everything that is a part of an ordinary man's everyday existence, a considerable increase in the cost of healthcare facilities is no surprise. With the rising numbers of lifestyle diseases and the inescapable ailments that come with ageing, we are likely to find ourselves in a situation where we continuously doubt our ability to be protected and cared for.

Long-term health insurance policies lend a helping hand in ensuring well-being in the long run. These plans assist in lowering the cost of hospitalization, assisted living, and other medical and care facilities, therefore easing the financial burden of large medical expenses in the long run. Thus in this blog we will portray the benefits of a Long term Health insurance which can be enjoyed by you along with its other related aspects. So without any further ado, let’s learn.

Long Term Insurance Plans – What are they?

Long-term medical insurance plans, which add another benefit to the list of cost-effective ways to cope with a health crisis, provide protection and coverage against diseases for a longer length of time, typically 2 to 5 years, depending on the plan you choose.

Unlike short-term healthcare insurance plans, which last anywhere from three months to a year at most, these plans not only provide coverage for a longer period of time but also cover a wider range of maladies, including long-term and chronic conditions. Long-term insurance, by removing the requirement for yearly plan renewal, also proves to be a more cost-effective option in the long run.

What are the differences between a Long Term & a Short Term Insurance Plan?

differences between a Long Term & a Short Term Insurance Plan

Why should you choose a Long-Term Health Insurance Plan instead?

For a variety of reasons, making a long-term plan for yourself and your family is a good idea. Because many long-term insurance policies cover pre-existing conditions as well as chronic diseases like cancer and tumors, they can be quite beneficial in easing the financial burden of treatment, hospitalization, daycare, and rehabilitation.

Longer-term health insurance policies can also be used as a well-planned and well-organized backup plan in the event of an unexpected emergency. There are diseases that you may be aware of when choosing an insurance plan, but if a disease strikes unexpectedly that you are not prepared to face physically, emotionally, or financially, long-term insurance will assist you in handling the necessary steps of treatment, thus assisting in managing the unforeseen, unlike short-term coverage plans.

Long-Term Care Insurance Eligibility Criteria in the United Arab Emirates

When it comes to eligibility criteria, each insurance provider has its own set of policies and restrictions for each insurance plan. The benefits of an LTC insurance plan, on the other hand, can be redeemed by policyholders if and when they are unable to accomplish at least two out of six ADLs, commonly known as "activities of daily living."

Selecting a Long-Term Health Insurance Plan in the United Arab Emirates

Choosing whether you need a short-term or long-term health care insurance plan is a difficult undertaking, and there is no quick fix for finding the finest long-term care insurance plan. Before committing to a specific plan, you must consider all of the factors and weigh the benefits and drawbacks. Once you've made your decision, you'll need to choose from a variety of insurance companies' alternatives.

There are many different types of long-term health insurance packages on the market. It's difficult to pick the best one if you don't know what to look for. We'll go through some criteria for selecting the best healthcare plan in the section below.

CUSTOMER SERVICE QUALITY

Customer service is critical to your whole experience, and it covers everything from consultation to claims to renewal. It's best to stay away from newer insurers because they're less likely to invest in customer service.

UNDERWRITER KNOWLEDGE

The underwriter evaluates the risks of insuring new clients, determines coverage and premiums, and finally deciding whether or not to insure them. Because many insurers outsource their underwriting, knowing who the underwriter is is important. You're less likely to run into issues into the road, such as being unable to renew your policy, if you use a reputed underwriter.

TENURE OF THE COMPANY BEING IN BUSINESS

Insurers with more experience typically have a longer track record. It's less likely that they'll have profit problems or go out of business.

PORTABLE PLANS

Even if you travel abroad, portability means you won't have to hunt for a new insurance coverage.

COMPANY’S PREMIUM INCREASING POLICIES

Less well-known insurers may raise prices or refuse to renew your policy based on the amount of claims you've filed in the previous year.

RELATIONSHIP BETWEEN BROKER/ INSURER/ CUSTOMER

A certified, professional broker can function as an intermediary between insurers and clients, facilitating relationships. They can even use their clout with insurers to get the greatest terms for their customers.

INCREASE OF PREMIUM AT RENEWAL

As previously stated, a specific percentage increase in premiums per year is appropriate as long as it is reasonable and consistent. Download our health insurance inflation analysis to see how eight major insurers have increased premiums over the last eight years.

MEMBERS WHO ARE COVERED BY INSURER

Larger insurers tend to have more insured members, which helps to defray the medical costs of the sicker. Your premiums will be more secure and predictable because they have a larger risk pool.

IS THE COMPANY WELL KNOWN AMONGST HOSPITALS?

Insurers must give a Guarantee of Payment (GoP) to ensure that they will pay expenses on behalf of policyholders when they seek inpatient care. The GoP can be rejected by hospitals if they believe the insurer is untrustworthy due to a poor track record of settling claims.

COST V/S ADVANTAGES

As previously said, pricing should not be the only consideration. Because low-cost plans may have a limited provider network, low benefit limitations, high out-of-pocket payments, and irregular premium hikes, this is the case. You should carefully study the service terms to ensure that what you're getting is sufficient to safeguard you. As a general rule, find a balance between price and benefits.

Advantages of a Long term Health Insurance Plan in United Arab Emirates

Long term Health Insurance Plan in United Arab Emirates

AVAILIBILITY OF ADDITIONAL SERVICES

Unlike short-term health insurance plans, long-term health insurance policyholders can choose from a variety of add-on benefits depending on the terms of their specific plan. Maternity coverage, hospital room rent waivers, and home care services are examples of add-ons.

RATE REVISIONS ARE NOT A PROBLEM

Insurance premium prices are susceptible to change, just like interest rates. Many insurance firms adjust their premium rates on a regular basis, resulting in price increases. While short-term plans are subject to these new rates since they expire every year, the cost of long-term care insurance remains the same as it was when the plan began.

PAPERWORK IS LESS

The absence of yearly renewal formalities also means you won't have to deal with the tedious paperwork that comes with many insurance plan renewals.

RENEWALS ARE SIMPLE

The main advantage of a long-term health insurance plan is that there is no need to go through the tedious renewal process every year (or quarterly in case of many small-term plans that last for a few months only). Long-term plans eliminate the burden of missed renewal dates and other such requirements, in addition to providing protection from unanticipated diseases for the duration of the plan.

PREMIUMS AT A DISCOUNT

Because the insurers will be with the insurance company for a longer period of time, many businesses will provide a reduced premium rate. In compared to shorter-term plans, long-term plans have a longer duration of insurance tenure, which results in the payment of a higher premium. Long-term health insurance plans, on the other hand, are cheaper than short-term health insurance plans because of the discounted rates and the overall cost over the insurance duration. Some insurance firms may even charge younger clients lower premiums.

PRE – INCLUDED NO CLAIM BONUS

Each year without a claim throughout the duration of your long-term medical insurance plan is likely to be rewarded with a no-claim incentive, which can be in the form of discounts, a monetary bonus, or additional medical care services.

PROGRAMS FOR DAY CARE AND WELLNESS

Many insurance companies include daycare and home care facilities as a reimbursable expense in long-term care insurance policies since they may cover a variety of chronic ailments that necessitate frequent assistance and care but do not necessitate the patient being hospitalized. Furthermore, several companies also offer welfare programmes for patients' post-treatment rehabilitation.

Conclusion

There is no appropriate age to begin considering adding an extra layer of security to yourself and your loved ones, especially in these unpredictable times. While it can be tough to think about and plan for prospective illnesses or health risks, it is always better to be prepared for either prevention or treatment with insured coverage, especially if such coverage lasts longer than a few months. Long-term healthcare plans might be your best friends if you carefully consider each factor and prepare for the unexpected.

Long-term medical insurance and long-term care insurance plans are some of the most cost-effective and realistic solutions available, with each piece in its proper place. We hope this blog provided you with incite full information. For more information on other related aspects of Banking and Insurances, feel free to checkout our Website.

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