Short Term Vs Long Term Health Insurance Plans: Which One Is Best For You?

Both short-term and long-term health insurance have benefits. While short-term plans provide coverage for a few months, long-term health insurance can be taken for a few years until old age.

However, it is crucial to understand the difference between the two in detail to make the right choices and choose the best health plan for yourself.

What is Short-Term Health Insurance?

Short-term health insurance plans provide medical coverage for less than a year. Typically, the duration ranges from 3 months to 6 months to 9 months. These types of plans are curated to provide financial protection in situations where you need immediate coverage for medical needs. Moreover, short-term health insurance does not provide coverage for critical illness or pre-existing illnesses.

Benefits of Short-Term Health Insurance

Affordability

Short-term health insurance is an affordable choice for individuals seeking temporary coverage. Its premium does not pressure them to pay for a longer duration.

Coverage For Specific Needs

Short-term health insurance benefits you by providing medical protection for specific needs. It is ideal for individuals who rely on employer-provided health insurance and need health insurance for a temporary period, such as while changing jobs.

Flexibility

Under short-term health insurance, you get the flexibility to choose the coverage period as per your requirements. Usually, the coverage period in short-term insurance remains under a year.

Easy Enrolment

The enrollment process for short-term health insurance is quite straightforward and swifter than that of long-term health insurance, thus providing immediate coverage.

No Claim Bonus

Short-term health insurance also includes a no-claim bonus, which increases the coverage amount if no claim is made during the policy’s short duration.

What is Long-Term Health Insurance?

Long-term health insurance policies provide comprehensive coverage for a longer duration, say 3 years, 5 years or even longer, as per your requirements. As these insurance policies provide much better and more extensive coverage than short-term policies, their premium rates tend to be on the higher side. However, they are the best health plan for individuals and families seeking wider and longer coverage.

Benefits of Long-Term Health Insurance

Long-Term Coverage

The primary and best benefit of long-term health insurance is that it provides medical coverage for a longer duration. You and your loved ones will stay secure from the financial crunch due to any medical emergency for years.

Discounts on Premiums

When you opt for longer health insurance plans with insurance companies, you can receive various premium discounts. This makes long-term health insurance a lot affordable.

No Frequent Policy Renewals

Another benefit of long-term health insurance is that you do not have to renew your policy every year. With some insurers also providing your grace period, you can stay secure without worrying about not being insured.

Add-on Covers

Another benefit of long-term insurance that makes it the best health plan is that it allows you to get add-on coverage. Add-on coverage provides extra protection for specific emergencies or medical issues, such as ambulance cover, consumables cover, maternity cover, etc.

Tax Benefits

Investing in a health insurance plan also helps you get tax benefits. You can claim tax deductions under Section 80D of the Income Tax Act.

Short-Term Health Insurance Vs Long-Term Health Insurance

Which One Is Best For You?

Now that you have a better understanding of both short-term and long-term health insurance, you can make the choice that best suits you. Both plans have their benefits and can become the best health plan, depending on individual coverage and medical requirements.

Health Insurance With TATA AIG

Whether you choose to have short-term or long-term health insurance, what matters the most is a reliable and reputable insurer. TATA AIG can be your health insurance provider. Their comprehensive health insurance is one of the best, with a record of swift claim settlement. They also provide the best coverage benefits like cashless hospitalisation, pre- and post-hospitalisation expenses, and daycare procedure coverage.

You can buy TATA AIG health insurance by visiting their website and completing the whole insurance procedure within a few minutes. There is no need for physical paperwork or office visits.