Difference Between Short Term and Long Term Health Insurance

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.

What is Short-Term Health Insurance?

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.

Benefits of Short-Term Medical Plans

Who Should Buy a Short-Term Health Policy?

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:

• International students studying or traveling in foreign countries as it secures Non-Resident Indians (NRIs) from visiting the country for a brief duration.
• For people who switch their jobs and they require short-term health coverage while switching jobs or insurance providers, short-term plans are a suitable option.
• As most countries have mandatory insurance requirements for visitors so anyone traveling abroad for business or vacations needs short-term insurance.

Disadvantages of Short-Term Medical Insurance

• Short-term plans do not provide coverage for pre-existing conditions.
• You cannot benefit from the NCB in short-term plans.
• Short-term plans generally have lesser coverage for diseases and medical expenses compared to long-term plans.
• They need frequent renewal, this may need a little more attention than long-term plans.

What is Long Term Medical Insurance?

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.

Benefits of Long-Term Health Plans

Disadvantages of Long-Term Health Insurance Plans

• It could be difficult to make changes to long-term plans once they are bought.
• People may not be inclined towards long-term plans, in case health insurance premiums need to be paid in a lump sum, so the cost of a long-term plan will be much higher.
• In the market there are very few senior and super-senior citizens with affordable long-term plans.

Who Should Buy a Long-Term Health Policy?

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:

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