health policy. A multi-year policy, as the name suggests, will provided coverage for an extended duration of two or more years.
It typically allows policyholders to pay the premium for the next two or three years in one go at the time of buying the policy, thereby relieving them of the hassle of renewing it every year.
While such policies have many advantages, one must also know that these have some limitations as well. Advantages: The premium for a multi-year health insurance policy remains unchanged for the entire period of the policy.
This is particularly helpful since insurers revise their premium rates upwards on a regular basis. Thus, a policyholder is protected from any subsequent premium revisions in the policy premium made by an insurer in the next couple of years.