The majority of us these days worry about having some or the other kind of illness. As a matter of fact, we spend quite a huge amount of money on health checkups and medicines. On top of it, the pandemic has made the situation even worse. This is one of the main reasons why people now are seen much inclined to get health insurance policies.
In fact, putting money into a health insurance policy is an investment that will pay you off when you are hospitalized. In one such situation, you will not have to think about the medical expenses and get your treatment without any worries. The only challenge that is faced by many people is choosing a health insurance policy. The confusion gets even worse when it is about choosing between a long-term health insurance policy and a short-term health insurance policy. Well, many people think they should go for the long-term health insurance policy and do not even consider finding out information about the short-term health insurance policies. So, let us discuss the short-term health insurance policy and its advantages that you can benefit from.
What is short-term health insurance?
Short-term health insurance plans are the kind of health insurance products that are valid for a short period such as 3, 6, or 12 months. Once the period is over, the insurance plan has to be renewed. However, the policyholders will be able to make the most out of the policy if they take the period of at least 12 months.
Key features of short term health insurance
The key features of the short-term health insurance plans are the same as the features of the long-term insurance plans. The only differences are in the pricing and the coverage provided by the plans. Here are the basic features of short-term health insurance plans.
- The duration of the health insurance plan is shorter
- You will be required to renew the policy once the tenure is over
- If you renew the policy regularly, you will be provided with a no-claim bonus
- You can port the short-term insurance plan to another plan or insurance company
- It gives you flexibility as changes are made every time you renew it
- Since it is of short duration, this kind of plan does not cover maternity, critical illness, and pre-existing ailments.
- The premiums you will have to pay for the short-term policies are lesser as compared to the long-term policies.
Advantages of short-term insurance policies
Some of the benefits of short term health insurance are discussed herein below:
- As the duration of the short-term plans is lesser, the premiums that one has to pay are lesser. Along with the premiums, the risk factor is also lesser
- As you buy a short-term insurance policy, you can avail of tax benefits under Section 80D of Income Tax. If you are working in an organization where you have been offered a short-term insurance policy by your employer, you will be able to get tax benefits
- The coverage features of the short-term plans are the same as the long-term plan. The main difference between these two types of plans is the waiting period
- The short-term plans are more flexible and can be ported
- During the time of renewal, which happens annually, you will be able to change the sum insured
- Each time you renew the policy, you can benefit from the no-claim bonuses
- This is helpful for professionals who do not have group health insurance coverage.
Apart from these, there are several benefits of buying a short-term health insurance plan which you will be able to avail of once you have it. To get more information on short-term health insurance policies and the various types of such policies, you can visit the IIFL website.