Long Term Health Insurance Plans Vs Short Term Health Insurance Plans
Published On Aug 22, 2021, Updated On Aug 25, 2021
Even in the best of times, life is unpredictable and emergencies can strike without a moment’s notice. So, if you find yourself in a situation that is financially burdensome, it is recommended to avail a suitable health insurance policy that ensures the much needed protection at all times.
But there are several queries that health insurance policy buyers have in mind about which policy term should they select, or if they should buy short term health insurance plans or long term health insurance plans. To get answers to such questions, you must take a deeper look at some topics which will help you find an ideal health insurance policy. Read them below:
Short Term Health Insurance Plans
Short term health insurance policies generally come for a policy term of 1 year. After 1 year, these plans need to be renewed so that you can continue availing policy benefits. Some policies like Corona Rakshak Policy or Corona Kavach Policy also have shorter policy terms like 3.5 months, 6.5 months, and 9.5 months. However, these plans cannot be renewed.
Usually, people prefer buying short term health insurance plans as these cost less than long term health insurance plans. Another advantage of buying these plans is that you get to save taxes on the premium paid for them, under Section 80D of the Income Tax Act, 1961.
There are some disadvantages of short term plans as well. Many insurers do not offer discounts on short term health insurance plans. Another disadvantage is that most short term plans do not offer maternity cover. Also, many of them do not cover you for pre-existing conditions or diseases.
Long Term Health Insurance Plans
Unlike short term health insurance plans, long term health insurance plans come with a policy term of 2 years or 3 years. If you buy these plans, then you will not be required to renew them for 2 or 3 years as per the term chosen.
Another advantage of buying long term health insurance plans is that the insurers offer discounts on them. These plans also cover you for pre-existing diseases, provide maternity cover, and also help you save tax on the premium paid for them, under Section 80D of the Income Tax Act, 1961.
These plans also come with a few disadvantages, which you must know so that you are able to decide between the two better. One of them is that you may be required to pay a premium in lump sum for these plans, which may not be easy.
As important it is to have a reliable health insurance policy with sufficient coverage, equally important it is to have a clear idea of the appropriate policy term that you require for yourself and your loved ones. If you choose a health insurance term that is decided after considering factors like your age, health issues, budget, etc., only then it will help you make the most of your health insurance policy.
Also Read: Benefits of Long Term Health Insurance
Disclaimer: 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.