Short Term or Long Term Health Insurance
The diagnosis of an ailment and regular visits to the doctor could sometimes signal prolonged medical treatment. It could result in huge expenses for an individual. Fortunately, having a health insurance cover can significantly curtail the burden of expensive healthcare.
There are various types of health insurance policies available these days that cater to specific needs of individuals and families. Broadly speaking, there are long-term and short term health policies. It is important to understand how they work, so that you can make better decisions when it comes to buying a good health cover.
Difference between Short-term and Long-term Health Insurance Policy
Regular mediclaim policies are available for a period of one year. On the other hand, a long-term health insurance policy is offered for multiple years viz. 2 or 3 years. Such policies usually offer comprehensive coverage and can be availed as an individual policy or family floater option.
As the term implies, a short term health insurance policy is specifically designed to provide financial security against medical emergencies for shorter duration. It has validity ranging from 3 to 6 months. Usually, this type of policy is quite affordable. It aims to provide cover for major healthcare expenditure like in-patient hospitalization, pre-and-post hospitalization medical expenses, day care treatment, ICU charges and ambulance costs.
When to opt for Short-term Health Insurance?
Short-term health policies are ideal for fulfilling the insurance needs arising out of temporary situations, for instance, a job change. It would fill the temporary gap in health coverage due to the transition.
Also, let’s say, you decided to port your health insurance policy. Portability is a time taking process. By purchasing a short-term health plan, you can stay worry-free about the unexpected expenses occurring during this period.
Furthermore, this policy proves to be beneficial for Non-Resident Indians (NRIs) and students who plan to stay in India for shorter period.
For these types of health insurance policies, you may be required to pay an annual premium which is quite affordable. In fact, low premium cost is one of the reasons many people opt for short-term health plans. In addition, health policies offer tax benefits under Section 80D of the income tax which helps in achieving savings.
Why you should choose long-term health insurance policy?
There are plenty of benefits that come with a long-term health insurance plan which cannot be overlooked. Firstly, the policyholders are relieved from the hassle of frequent policy renewal. Once they have opted for this policy, they can forget about renewal for at least 2 years or as long as the policy is valid. Unlike this, in a short-term plan, regular renewal of the plan is necessary otherwise you may lose out on benefits like ‘no claim bonus’.
Premium is a key factor that makes a long-term health policy stand apart. One may be led into thinking that a short-term health policy has an affordable premium but in the long run it could be expensive. On the contrary, policyholders can look for discounts on premium if they choose a health policy for longer tenure.
In terms of coverage offered, long-term plans have an edge over short term health insurance plans as they offer maternity cover. This feature is not available in short-term health plans.
For young adults who do have any health risks, short term plans may still be beneficial. Nevertheless, you cannot ignore the tremendous benefits offered by long-term health plans especially if you have a family to take care of.
Both the types of health insurance policies have their own unique benefits. Considering the above-mentioned facts, opting for the best health insurance is of utmost importance so that you and your family are completely protected against any financial impact due to medical emergencies.
If a short-term health plan seems to be the best option for you, then choose Flexi Short Term Health Insurance Plan by Care Health Insurance (Formerly Religare Health Insurance) which will take care of your health care needs by offering cover for hospitalization and related expenses.