Short-Term vs Long-Term Health Insurance: Which is Right for You?

Long-Term vs Short-Term Health Insurance – Guide to Choose the Best

Owing to rising medical costs, if you or a family member need hospitalisation or medical treatment, you may have to spend a significant amount of your savings.

One way to overcome these financial traps and protect yourself and your family is to buy a Comprehensive Health Insurance Policy. A Health Insurance policy will pay for any medical expenses incurred due to hospitalisation, surgeries, treatments, ambulances, etc. This is done either through cashless hospitalisation or reimbursement.

Long-Term vs Short-Term Health Insurance

If you have long-term Health Insurance, such as a Star Comprehensive Insurance Policy or a Critical Illness Multi pay Insurance Policy, the benefits are long-term.

However, in addition to top long-term plans, insurers have also introduced short-term Health Insurance policies. 

Therefore, it is essential to understand the distinction between the two before you buy Health Insurance online.

To help you in choosing an appropriate health plan, the following table compares long-term and short-term Health Insurance in India.

What are the short term health insurance plans? 

Short-term health insurance plans are temporary medical insurance policies that offer coverage for a duration of less than 12 months. They are also called temporary or term medical insurance.   

Advantages and disadvantages of short-term Health Insurance

In addition to covering many Health Insurance costs, a short-term Health Insurance plan has several advantages and disadvantages.

Advantages 

• These plans are suitable for a shorter period as they provide coverage at a more reasonable cost.
• Short-term Health Insurance plans can also include perks like cumulative bonuses.
• This is a good option for people who have only employer-sponsored Health Insurance policies or residing temporarily in the country.
• With short-term Health Insurance, you can take advantage of tax benefits provided by Section 80D of the Income Tax Act of 1961.
  Disadvantages 
• You must renew these plans frequently to maintain the benefits, such as a cumulative bonus.
• Over time, a short-term plan’s premium may cost more than regular annual or long-term Health Insurance.
• Usually, these plans do not cover pre-existing diseases.
• You will not be able to avail add on covers, such as maternity benefits.
  Consider the advantages and disadvantages before buying the best short term health insurance. 

What is covered in short-term Health Insurance plans?

• Hospitalisation
• Ambulance charges
• Organ donation expenses
• Health check-ups
• Pre- and post-hospitalisation

What is long term health insurance? 

Long-term health insurance refers to a plan that provides coverage for medical expenses over a period of two to three years. 

Advantages and disadvantages of long-term Health Insurance

Long-term Health Insurance policies offer more comprehensive coverage for medical emergencies.

Advantages:

• You can benefit from the Health Insurance policy’s protection for a more extended period.
• You do not need to renew your Health Insurance frequently or worry about forgetting to do so and letting your coverage lapse.
• When you choose a long-term Health Insurance plan, many insurers will provide a discounted price.
  Disadvantages:
• It may be challenging for some people to pay a higher premium 
• The procedure of porting a policy to a new insurer will take longer and could be more challenging because the policy period is longer.

Consider the advantages and disadvantages before you choose the best long-term health insurance.

What is covered in long-term Health Insurance plans?

• Pre- and Post-hospitalisation
• Daycare procedures
• Modern treatments
• AYUSH treatments
• Add-on covers
• Wellness programs
• Critical Illness Cover
• Pre-existing diseases (PEDs)

Conclusion

Now you know the difference between short-term and long-term Health Insurance, along with its advantages and disadvantages, you can make an informed decision about a Health Insurance Policy. Please note that currently, we do not have any short-term policies.

Now, it is up to you to decide if you need a short-term or long-term plan. The most crucial lesson to learn is that everyone needs Health Insurance. So, if you do not already have one, invest in one right away!

Long term health insurance costs depend on many factors, such as age, health, gender, marital status, coverage amount and duration, elimination period, inflation protection, location, and insurance company. Health insurance short term provides benefits like immediate coverage, flexibility in duration, affordability, customizable choices, and access to many networks of healthcare providers. 

We have seen the difference between short-term and long-term health insurance. Based on your wishes, choose either long term health insurance or short term health insurance.