What is Short Term Health Insurance?

 Short Term Health Insurance Explained

A short term health insurance plan is a kind of medical insurance policy that offers coverage for a limited period of time. Typically, short term health coverage lasts for a period of up to 12 months. The best short term health insurance plans offer temporary coverage for any medical emergencies or requirements. And above all, they can be more affordable than their long term counterparts, since the premiums are on the lower side.

This kind of health cover includes financial protection for preventive care, emergency medical needs, doctors’ consultations and any other urgent medical requirements. Short term health insurance coverage can be extremely useful if you are temporarily uninsured on the health front, or if you want to access health insurance coverage at affordable costs.

Benefits and Effects of Investing in A Short Term Plan

Short term health plans offer many benefits for the policyholder. If you are planning to buy a short term health insurance plan, check out how these policies can have a positive effect on you and your finances.

• They fill in any short-term gaps in health insurance coverage

If your long term health insurance coverage needs to be renewed, but you do not have the budget to accommodate the premium for the same, putting it off can leave you uninsured in the interim period. At such junctures, short term health plans can fill in any gaps in your insurance coverage without bringing on any additional financial stress.

• They come with low premiums

The best short term medical insurance plans typically offer you a wide range of coverage benefits at reasonable premiums. Also, since the coverage is only for a limited short term period, the risks associated with it are lower. So, insurers charge lower premiums for short term health insurance coverage than long term medical plans.

• They offer added benefits

The best short term health insurance plans can also offer a number of additional benefits such as free annual checkups and No Claim Bonus. With these additional features, you can maximize your benefits over the short term, making your policy very cost-effective when you compare the premiums with the advantages.

• They can help you save tax

In addition to the benefits outlined above, you also get to enjoy tax benefits under section 80D of the Income Tax Act when you buy short term health insurance. As per this section, the premium you pay for your insurance plan is deductible from your total taxable income up to Rs. 25,000 per year.

When Should You Invest in a Short Term Health Insurance Plan?

You are the best judge of whether or not you need short term health coverage. However, it can always help to be aware of the situations in which short term health insurance plans can be useful. Here are some such scenarios.

• If you only have your employer’s health insurance cover, and you are planning to switch jobs

• If you are an NRI visiting India for a few months at a stretch

• You are looking for an affordable health insurance cover temporarily

• There is a gap in your health insurance coverage

Aside from these scenarios, you can always opt for the best short term health insurance plans if you wish to have your long term medical cover at affordable premiums.

Conclusion

Just like in the case of long term coverage, it is important to pay your premiums promptly if you choose to buy short term health insurance too. This way, you can continue to enjoy the benefits offered by your short term medical insurance plan without any interruption.   

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