New Delhi, June 9 -- If the renewal date for your health insurance is falling anytime soon, you may consider buying a multi-year policy by paying a single premium. These policies will benefit you as most insurers are currently offering a discount, and you will get locked into the same rate for multiple years, provided you don't cross the age slab that warrants a change in premiums.

But what if the amount of single premium you pay for a multi-year policy exceeds the tax deduction limit available on health insurance premiums under Section 80D? According to the income-tax law, you can claim the tax deductions proportionately over the policy term.

Under Section 80D, a resident individual can claim a tax deduction of up to Rs.25,000 in a yea...