There is an old saying, “Health is Wealth”, and people understand the meaning of this phrase during COVID-19. Now, people understand the importance of health insurance and financial backup for medical treatment. A health insurance plan has become necessary due to inflation, and medical treatment costs have skyrocketed. The article below will try to make you understand the difference between short-term and long-term health insurance plans.
What is Short Term Health Insurance?
Short term health insurance is a type of health insurance plan that is valid only for a short policy term, i.e. from six months to 1 year. These types of health plans offer coverage benefits similar to long-term health insurance plans, and short-term health insurance plans are generally suitable for NRIs.
What is Long Term Health Insurance?
Long term health insurance is a type of health plan that provides health coverage for a long period, i.e. up to 2 to 3 years. This type of health plan is generally suitable for everyone. Long term health insurance offers you discounted premiums along with comprehensive health coverage.
Short Term vs Long Term Health Insurance
Short-term health insurance plan is only valid for a shorter policy tenure and must be renewed yearly. A long-term health insurance plan provides you with health coverage for the policy tenure of two to three years. The following are the major differences between these two types of health insurance plans:
|
Parameter |
Short Term Health Plans |
Long Term Health Plans |
|
Policy Tenure |
3 months to 1 year |
2 to 3 years |
|
Premium Amount |
Comparatively less than long term health plan |
Comparatively more than short term health insurance |
|
Renewability |
After every 12 months |
After every 2 or 3 years |
|
Coverage for Pre-existing conditions |
Covered after waiting period |
Covered after waiting period |
|
Option to buy Add-ons |
Available |
Available |
|
Monkeypox |
Covered |
Covered |
|
Covid-19 |
Covered |
Covered |
Who Needs to Buy Short Term Health Insurance?
Short term health insurance is the best option for those who need health insurance for a short period of time. In the section below, we will try to help you who should buy the short term health insurance plans:
- Short term health plan is the best option for NRIs (non-residential Indians).
- Short term health insurance is a good option for someone who is about to switch jobs.
- Short term health policy can be a good option for foreign students who come here to study.
Read More About Monkeypox Covered Under Health Insurance
Benefits of Short Term Health Insurance Plans
Short term health insurance plans offers various other benefits apart from their coverage benefits. Below are some of the benefits of short term health insurance plans:
-
Low Premiums:
Short term health plan costs you less than long term insurance plans. That means the premium you need to pay for short term health insurance is much less compared to long term health plans.
-
Availability of Cumulative Bonus
Health insurance companies offers cumulative bonuses such as no claim bonuses (NCB) if the insured does not raise the claim for the entire policy tenure.
-
Tax Benefits
You can avail of tax benefits under section 80D of the Income Tax Act under short-term health insurance plans.
Coverage Benefits Under Short Term Health Insurance plans and Long Term Health Insurance Plans
Below mentioned are the coverage benefits offered under the short term health plans and long term health plans:
-
In-patient Hospitalization
In-patient hospitalization means hospitalization (more than 24 hrs) expenses arising due to any diseases and injury.
-
Pre-Hospitalization
Pre-hospitalization means medical expenses incurred before the hospitalization of the insured.
-
Post-Hospitalization
Post-hospitalization means medical expenses incurred after the discharge from the hospital of the insured.
-
Daycare Treatment
Any treatments that can be treated in less than 24 hours of hospitalization is covered such as chemotherapy, cataract, etc.
-
Domiciliary hospitalization
Any expenses incurred due to home hospitalization are covered.
-
AYUSH Treatment
It covers various alternative treatments such as Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy.
-
OPD Charges
Any expenses arising from doctor’s prescription and medical test costs are covered.
-
Annual Health Check-up
A free annual health checkup for the policyholders is covered.
-
Emergency Ambulance
Any expense arising from ambulance service in case of a medical emergency is covered.
Benefits of Long Term Health Insurance?
Below mentioned are some of the benefits of long term health insurance plans:
- Longer policy tenure: Long term health insurance offers longer policy tenure. That means policyholders can avail coverage benefits for a longer period of time with any renewal.
- Get rid of the headache of renewal: Long term health insurance plan offers longer policy tenure so that you will get rid of frequent policy renewals.
- Chances of claim rejection become less: Sometimes, the policyholder forgets to renew his policy and tries to claim. In such cases, the health insurance company rejects your claim because your policy is inactive. But in long-term health plans, the chances of claim rejection are reduced as the policy tenure is longer.
Who Needs to Buy Long Term Health Insurance?
Long term health insurance plan is suitable for everyone as it provides comprehensive health coverage and longer policy tenure of 1 to 3 years. Anyone who is in need of a health insurance plan can buy a long term health insurance plan.
Conclusion
Now, You know more about these two types of health insurance plans and their specific benefits and coverage benefits. You can differentiate between short-term and long-term health insurance. So that you can buy a health plan for you and your family to get financially protected from any medical emergency, this will help you make a better-informed decision while choosing the best health insurance.