When buying a health insurance plan, customers have a dilemma about whether to go for a long-term or short-term insurance plan. However, the choice of the plan depends upon the individual’s situation, requirements and goals to pick a suitable insurance plan, so it is recommended to understand your insurance needs first. As healthcare costs are soaring, it is best to have the right insurance backup to steer away from using up your savings during medical emergencies.
Long- Term and Short-term health Insurance policies are two types of health insurance coverage. They both differ in their tenure, premium, and renewal. Both are suitable in different scenarios. So, don’t put it off anymore and head over the following information, to get a comprehensive health insurance policy.
A short term health insurance in India is a kind of medical insurance policy that offers coverage for a limited period, generally, they have a validity period of 6 months to 12 months. Good short-term health insurance plans offer non-permanent coverage for any medical emergencies or requirements such as pre and post-hospitalisation, ambulance charges, organ donor expenses and more. And foremost, they can be more affordable as compared to long-term since the premiums are on the lower side. Let’s take a look at the features and benefits of short-term health insurance plans and who should buy them.
Short-term medical insurance plans are the best option for people who are unsure about buying a long-term policy. Short-term insurance will be highly useful for the following category of people:
Long-term health insurance is a health insurance plan with a tenure of around 2 to 3 years or more depending on the insurer. Because of its permanent nature, policyholders can even get coverage for pre-existing diseases (PED). However, for the plan to cover pre-existing diseases, one would have to complete the waiting period specified under the plan. You can also get additional coverage for daycare treatments, comprehensive insurance plans where everything lies under an umbrella which isn’t possible with short-term plans.
With many advantages, long-term policies are best suited for people who have stable jobs and are looking for comprehensive health coverage for themselves as well as for their families. A long-term health policy protects the policyholders against any unexpected illnesses or accidents. The following are the category of people who should look into getting a long-term policy:
|Short-Term Health Insurance
|Long-Term Health Insurance
|The premium amount is lower if compared to long-term healthcare insurance.
|The premium amount is slightly higher if compared to short-term medical insurance.
|6 to 12 Months
|2 to 3 Years
|No add-ons are available in short-term medical insurance.
|Many add-on covers are available with long-term medical plans.
|Short term health plans need to be renewed frequently.
|Long term health policy doesn't require frequent renewal.
|Pre-existing ailments are not covered.
|Pre-existing ailments are covered and they have a fixed waiting period.
| Short term health plans are suitable for:
NRIs or international students.
Individuals who are switching jobs.
People switching between insurance companies.
| Long-term healthcare insurance is suitable for:
Individuals looking for long-term coverage.
Policyholders who want to secure the healthcare expenses of their family members.
Individuals who want to enjoy extensive coverage.
| Compared to long-term healthcare insurance, the overall premium paid year on year is higher.
Can not customize the policy once bought.
Requires frequent renewal, such as yearly.
| Porting the insurance policy to a new insurance company isn't easy because of the longer policy tenure.
Customer has to pay a higher premium amount at once.