Difference between Short Term and Long Term Health Insurance
Health insurance is one of the primary solutions when it comes to dealing with medical emergencies. And, with the constantly changing lifestyle and the current scenarios, health insurance is much more than just an option. Under such conditions, there are two options to choose from. The choice lies between short term vs long term health insurance plans. When choosing the insurance plans one must take in consideration their medical conditions and whether they have any serious medical illness or not.
Short Term insurance Benefits
Short term health insurance plans have a time span of six months to two years at the most. They are known to cover both medical as well as travel expenses, and any kind of financial loss which is incurred on those two fronts during this time period. It does not have a very high rate of premium. As far as the long term vs short term insurance debate is concerned, there are certain advantages of this option. They are as follows:
- The one who avails this insurance plan need not renew it every quarter. The insurance plan automatically expires after the given time period, giving you the promised advantage.
- This plan suits international students and emigrants perfectly. They tend to travel a lot and as a result, and they risk getting injured or contracting illnesses. This plan would cover up the losses incurred.
- It has services extending to international locations too. Even outside India, if you are facing any kind of financial problem which falls within the purview of the terms and conditions of this plan, you would be reimbursed for it.
Long Term Insurance Benefits
Long term health insurance plans are not only for an individual but also for the family of the person who pays the premiums. It is valid for a long period of time and keeps you reassured of reimbursement at any given point of time. In the comparison between short term vs long term health insurance, the long term health insurance plans have their own advantages. These are:
- It is extensive in nature. In addition to covering all the injuries and impairments that can happen in the time period of the insurance, it also covers serious illnesses.
- The limitations of this plan are almost non-existent. As long as you can pay premiums, you can avail this.
- One need not worry about renewing the plan. There is no worry about the plan expiring. You do not have to keep checking your calendar to find out when it would run out of time. You can also choose for the premiums to be automatically deducted from your bank.
Short Term vs Long Term Health Insurance Plans
The short term vs long term health insurance plans dilemma can be better understood if they are compared in a tabular format. Take a look:
|Long term insurance||Short term insurance|
|It is expensive, as the premiums need to be renewed every year.||It is not very expensive as the premiums do not need to be renewed every year.|
|It can help you to save on income tax, as it often exceeds the time period of a fiscal year.||It cannot contribute towards saving your income tax, as the tenure is very short and would not be considered.|
|During the time period of the insurance, any kind of revision of insurance rates would not affect the customer.||The fluctuating rates of the insurance market would affect the customer since the plan is short.|
Tips to Choose An Ideal insurance Plan
There are several things to be considered before choosing the perfect insurance plan.
- For instance, one must consider the amount of travel they would undertake in the given time period.
- Secondly, if they have any terminal or prolonged illness then they should probably go for long term insurance plans.
- Thirdly, if their source of income is stable, then they can choose either of these two plans. However, if the one time annual payment of the premium amount is heavy on your pocket, you now have the option to pay your premiums on a monthly basis if you opt for a health insurance on emi.
Now that the long term vs short term insurance dilemma may have been resolved, you can take your pick of the right insurance plan for yourself. Finserv MARKETS is an excellent platform that helps you do this! With Health Insurance plans available on Finserv MARKETS that offer customization to suit your specific needs, swift claim settlements, and cashless facilities at 6500+ networks hospitals, you need not look elsewhere.
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