Long Term v/s Short Term Health Insurance: Which One Should You Buy?

With the increase in the number of health related diseases and advanced medical technology, people have become alert when it comes to their health. Visiting a doctor for a regular medical check-up is being done by the majority of the people these days. However, it could drain you financially but in case you have got yourself insured with an optimum health insurance plan, then you are not required to worry as your health insurance provider would offer you coverage towards costly medical expenses.

There are several types of health insurance plans available in the industry to meet certain requirements of individuals and their family members according to the budget decided. They are broadly categorized into long-term health insurance plans and short -term health insurance plans. So, before you zero in on a particular plan, it is important to know the difference between the two in order to make an informed choice.

Short Term Health Plan V/S Long Term Health Insurance Plan

A short term health insurance plan can be availed by the policyholder for a duration of 1 year whereas, a long- term health insurance plan is offered for a longer duration i.e. for 2 or 3 years. These plans generally provide comprehensive coverage and can be availed as either individual or family floater.

As the name suggests, a short -term health insurance cover is designed specially to offer financial protection against health emergencies for a shorter time period. Generally, these insurance plans are quite economical and aim to offer coverage against major medical expenses such as pre-hospitalisation, post-hospitalisation, in-patient hospitalisation, ICU charges, etc.

When to Choose a Short-Term Health Insurance Plan?

These plans are ideal to cater to health insurance requirements for a short phase such as at the time of job change, Coronavirus pandemic, etc. During the transition phase, these types of health insurance plans help in meeting the temporary gap.

• The time period for these insurance plans can be between three months to one year
• The advantage of getting yourself insured with a short- term health cover is that you can stay worry free in regards to any unforeseen healthcare emergency within that time period
• These insurance plans can be an optimum option to stay insured at the time of insurance plan portability too
• Also, students who come to India for studies for a shorter time period and for NRIs , a short -term health plan will be ideal plan to opt

However, while talking about Corona Rakshak and Corona Kavach short term health plans with a policy duration of 3.5 months, 6.5 months and 9.5 months, it is advisable for everyone to purchase them in order to deal with the pandemic with the correct medical care.

Moreover, for a short-term health insurance plan, you are required to pay a lower premium amount and that’s one of the key reasons behind why individuals choose to go for short- term health plans. And other than this you are also eligible to avail tax benefits under the section 80D of the Income Tax Act.

When to Choose a Long-Term Health Insurance Plan?

These health insurance plans are for everybody. There are various benefits associated with buying a long-term health insurance plan. Some of the benefits associated with buying long-term health insurance plans are as follows:

• The time period for these plans vary between 1 year to 3 years. It simply means, a policyholder would get insurance coverage for a longer duration. Also, they do not need to get worried regarding going for yearly policy renewal, which is the case with short- term insurance plans, wherein if you forget to renew it before expiry date, you will lose your accumulated NCB.   
• These insurance plans come with certain attractive discounts on the premium.
• The policyholder is not required to worry regarding revision of premium rates as is the case with short-term health insurance plans
• The only concerning point is that premium payable towards a long-term health plan is on a higher end in comparison to a short-term health plan. However, it is totally worth it as the benefits and coverages offered are also more in long-term plans comparatively.

Take Away

After going through the pros and cons of both short-term as well as long-term health insurance plans, we have understood that both have their unique set of benefits to offer. While buying a health insurance plan for yourself as well as your loved ones, take into consideration the afore-mentioned points and choose the ideal plan that best suits you, so that you stay financially covered in the event of any unforeseen health emergency.

Also Read:  Advantages of Long Term Health Insurance Policy

Why Purchase Long Term Health Insurance?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.