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How Do Short Term Health Insurance Plans Work?

Published On Mar 15, 2023

Health insurance is a tool that provides financial coverage to policyholders if any medical emergency arises in the future. There are two types of health plans: short-term and long-term health insurance. Each of them has unique features and benefits. In this blog, we’ll learn all about short-term health insurance plans. 

How Do Short term Health Insurance Plans Work

What is a Short-Term Health Insurance? 

A short-term insurance policy offers comprehensive financial protection for medical procedures that are completed in a short period of time. Usually, the duration of the plan is 3–6 months; however, it can be extended up to a maximum of 12 months. After the completion of this period, you can renew your health insurance plan for another year. The policyholders generally have to pay a lower premium for their short-term health plans. 

Benefits of Purchasing a Short-Term Health Insurance Plan

The benefits of purchasing a short-term health insurance plan are highlighted below.

  • Flexibility to Switch Plans: According to the IRDAI, policyholders can switch from one health insurance to another at the time of renewal. Therefore, if you’re covered under a short-term health insurance plan, you can change your plan if you’re not satisfied with the terms and conditions of the policy. 
  • No-Claim Bonus: If you purchase a short-term health insurance plan, then you can easily claim the no-claim bonus earned for not making any claims throughout the policy period. 
  • Low Premiums: Generally, the policyholders have to pay low premiums for short-term health insurance plans. As a result, you can get financial coverage from insurance companies without hampering your budget. 

What is Covered Under a Short-Term Health Insurance Plan? 

Listed below are some of the inclusions of a short-term health insurance plan. 

  1. Medical check-ups
  2. Pre-and post-hospitalization
  3. Ambulance charges
  4. Medical bills and OT expenses
  5. Room rent
  6. Daycare treatment
  7. Organ donor expenses

Things to Consider Before Purchasing Short-term Health Insurance

When purchasing a short-term health insurance plan, the following are the things that you should keep in mind: 

  1. In comparison to long-term medical insurance plans the coverage for short-term medical expenses and disease is lower. 
  2. Pre-existing conditions are not covered under short-term health insurance. 
  3. Read the policy document carefully to understand all the inclusions and exclusions covered under the plan thoroughly. 
  4. Short-term health insurance is enough to meet medical requirements during transition periods such as pandemics, job changes, and more. 

Difference Between Short-term and Long-term Health Insurance 

The table below highlights a detailed comparison between short-term and long-term health insurance plans. 

Comparing Factors

Short-Term Health Insurance

Long-Term Health Insurance

Policy tenure

Between 3 months to 1-year

More than 1-year


Comparatively lower

Comparatively higher


No add-ons are available

Add-on coverage is available

Pre-existing conditions

Pre-existing disease are not covered in all cases

Pre-existing diseases are covered in most cases

Portable Flexibility 

The policyholder can easily change their health insurance policy

Flexibility to change health insurance policies is comparatively low. 


Short-term health insurance plans might not be suitable for every individual. Therefore, before purchasing any health plan, make sure that you compare them on the basis of coverage and other factors such as the claim settlement ratio of the company, network hospitals, and more. Moreover, you can get personalized health insurance advice from experts at InsuranceDekho.

Also Read: 

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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.

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