Short Term Insurance to Keep Anxiety at Bay
Sindhu is an NRI living in the United States. But she has a great interest in learning Sanskrit. So her parents and herself have decided to study in India. But both she and her parents were concerned about her health. Sindhu will stay in India only for one year to learn. For such a short span, going for the Long Term Insurance plan is a little costlier and also of no use as Sindhu won’t be staying for a long time, like two years or more. Sindhu’s father discussed it with many of his friends, one of whom is a bank manager. He has a lot of knowledge of how the finance industry works and is up to date with new trends in the market. He advised Sindhu’s father to opt for Short Term Insurance. Initially, Sindhu’s father did not understand. When explained, Sindhu and her father learned that temporary Term Insurance is a type of Insurance taken for a short period, like a one-year maximum. The premium paid is also less than the premium paid for long-Term Insurance. Now Sindhu and her family are tension-free. Now Sindhu can go to India and excel in her career.
Health insurance for a short period is called temporary Term Insurance. Most insurance companies allow 30-90 days; however, some companies provide coverage for 12 months. As a result, a Short Term Insurance plan has been launched, designed to meet the needs of a pandemic. The Insurance offers limited financial assistance in the event of an emergency. Compared to major medical plans, short-term insurance policies tend to have lower premiums and less coverage.
The necessity of short Term Insurance
As mentioned earlier, it is instrumental in meeting financial needs for a short period.
- If you seek Insurance for a short time, then a short-term plan is the best option for you.
- For transferring one’s health insurance policy, this Insurance is cost-effective and stress-free at the same time.
- Non-resident Indian students studying in India may find this Insurance convenient since it is cost-effective for a short period and secures their health by providing them with financial support in case of an emergency.
- The particular period is not accompanied by tension or stress.
Coverage for Short Term Insurance
It’s impossible to predict everything in life. You can never be sure when something might happen. This Insurance provides coverage for unexpected health issues or accidents during the specified term period. The Insurance also covers a hospital bill regardless of whether the patient is admitted to the hospital. Occasionally, it has been observed that a discount is given when visiting a hospital or doctor participating in the preferred network.
There are, however, some services not covered by this plan. Insurance does not cover an individual who has a regular appointment with a dentist. Pregnant women are also not covered by Insurance. Ensure you understand what the insurance plans cover or do not cover. It does not cover pre-existing health expenses.
When taking short-term plans
We do realize that maybe Short-Term Insurance is cheaper than long-term Insurance. Unfortunately, this can never happen with long-term Insurance. You can never predict when an accident, illness, or other uncertain circumstance will occur. It may or may not come for the time specified in your short-term policy. In such cases, it is recommended that you choose long-term Insurance only when attempting a long-term solution. This Insurance does not give any credit or subsidy.
A person who has lost their job or plans to change position and get a new job can go for this Insurance. There are some places in the world for which you must have Insurance, and then you can opt for it just for proof purposes.
Where to buy Short term insurances?
Many insurance companies are selling these insurance policies. Some websites compare the quotes given by different companies making it easier to choose.
Pros
1. Buy any time of the year: Unlike long-term Insurance, short-term Insurance can be bought any time of the year.
2. Less Premium: One of the most outstanding factors of this Insurance is that the premium is cheaper than the rest.
3. Broader Network: If one is consulting the doctors or the hospitals within the insurance provider’s network, you will get a discount.
Cons
1. Pre-existing health conditions are not covered: One of the drawbacks of this Insurance is that any pre-existing health condition is not covered. Only if there are unforeseen cases, then it is applicable.
2. Short-term validity: The duration is very short. In case of maturity again, you have to apply.
