Difference Between Short-Term and Long-Term Health Insurance Plan: Which One Should You Buy?
Raghu is an employee who is working in a private limited company. He is looking to buy a term health insurance plan for himself and his family members. But he doesn’t know what type of health insurance plan will suit his budget. Since many insurance companies offer short-term and long-term plans for customers, he was very confused to select the right one. As a result, he compared the differences between them from different sources and gained more ideas.
A term health insurance plan offers coverage for a certain period and you can claim amounts for illnesses during emergencies. On the other hand, you should know the features and other things in detail. Not only that, but you must also determine the duration while investing money. This is because it plays an important role in deciding the premium rates. Moreover, you should know what a short-term and long-term health insurance plan is before buying. It is wise for you to compare them while buying a policy.
What are Short-Term Health Insurance Plans and Their Features?
A short-term health insurance plan is valid for 12 months only. How much does short-term health insurance cost? The premium prices for short-term plans are very low. It is ideal for you when you want to save more money. You must renew the plan before it expires. A short-term policy doesn’t provide coverage when you suffer from pre-existing conditions. Apart from that, the plan has no add-on features when you want to get additional coverage.
The primary advantage of a short-term plan is that it gives ways to get free annual check-ups and a no-claim bonus (NCB). If you are a student or an NRI, then this plan will satisfy your needs. You can even get tax exemptions after buying a policy from the insurer. It also allows you to switch between insurance companies seamlessly based on your choices. The sum insured amount ranges from 1 lakh and goes into crores in this plan.
What are Long-Term Health Insurance Plans and Their Features?
A long-term health insurance plan offers coverage for more time when compared to a short-term plan. It is valid for 2 to 3 years and you need to check the duration while purchasing a policy. When you don’t want to invest your money on an annual basis, then it is the right choice for you. The premium costs are high and allow you to get comprehensive coverage with the best features.
The plan comes with add-ons and allows you to get maximum protection against terminal illnesses. You can even choose a family floater plan for your children and other family members with a single premium that can reduce your expenses. At the same time, this feature is not available in a short-term insurance plan. You can even avail of cashless treatments at listed hospitals under long-term insurance. The plan offers a maximum sum insured of Rs.10 crores to you. Besides that, it allows you to get coverage for pre-existing illnesses after completion of the waiting period thereby helping you to ensure peace of mind from high medical costs.
What is Covered in Short-Term and Long-Term Health Insurance Plans?
Some of the benefits offered by a short-term plan include hospitalization expenses, ambulance fees, and regular health check-ups. On the other hand, they are very limited when you want to claim coverage age. A long-term policy allows you to customize the coverage depending on your needs.
Apart from that, you will get broader coverage after buying this plan. Some of them include pre-hospitalization, post-hospitalization, hospitalization expenses, income tax benefit, maternity coverage, mental illness coverage, no claim bonus, coverage for terminal illnesses. They let you ensure high protection from medical inflation by addressing your essential requirements.
Where to Buy Short-Term Insurance and Long-Term Insurance Plans?
Several insurance companies offer both short-term and long-term plans at the best prices in the markets. You can know the features of both plans online that will help you gain more ideas. Also, you can buy top short-term health insurance plans which cater to your lifestyle and budget. However, you should follow the instructions while buying a plan online. You can even purchase long-term health insurance plans with high discounts that will help save your expenses. Most insurers offer them at lower prices thereby showing methods to avoid stress and other problems.
Short-Term or Long-Term Health Insurance: Which is the Best One to Buy?
Buying a short-term or long-term major medical health insurance depends on your income, number of dependents, premium paying capacity, and so on. If you want to buy a plan for Covid-19, malaria, dengue, viral fever, and pneumonia, then a short-term policy is the right choice for you. On the other hand, if you want broader coverage, then long-term insurance is the best option for you. At the same time, you should evaluate the co-pay and sub-limits while buying long-term health insurance in India from an insurer. This is because they come with some restrictions when you claim amounts. The rejections of short-term plans are high when compared to long-term plans. Therefore, you should consider evaluating the claim settlement ratio (CSR) of insurers with more attention that will help move further. You should also consult with experts to determine what type of plan will exactly fit your job and other things.
The Conclusion
Buying a new health insurance policy involves various factors and you should keep in mind which gives ways to choose the right one. The duration of a plan is very important because it will impact your premium amounts. If you are a new buyer of health insurance, then you should consider evaluating the differences between short-term and long-term health insurance plans from various sources. This, in turn, gives ways to buy a plan which tailors to your life and other criteria. You should also check the minimum and maximum age entry for both plans that help claim the amount without any hassles. Choose your plan wisely that offers complete protection for you.
