In this fast and challenging environment, there is a need to be updated on the different healthcare options available. These days short-term health plans are becoming very popular among individuals.
Whether transitioning between jobs or waiting for the employer’s health policy to start, short-term health insurance plans are considered a reliable option. As the name says, these plans offer coverage for a shorter duration compared to standard health plans.
So, why are these plans needed, and how can they help you? This article is for you if you also have these questions and want to know more about short-term health plans.
Things to Know about Short-term Insurance Plans
Short-term plans are of shorter duration, usually less than 12 months. These plans provide the same coverage as the long-term ones but need frequent renewables. You should be aware of some things before pursuing these programmes. Let’s have a look at them:
- The policy period of these plans is usually between three months to six months.
- The premium cost is low if compared with the long-term plans.
- You will need to get it renewed more frequently since they expire quickly.
- In these plans, the policyholder is not covered for pre-existing diseases.
- Moreover, these plans do not offer any provision for adding top-up or rider plans.
Benefits of Short-term Insurance Plans
So, why should you go for a short-term plan? Here are some of the reasons:
Affordable Premium Rates
The premium is also less since these plans are for a short while. Unlike the standard plans, where the term period is longer, the insurance companies have a longer duration to manage the patient’s expenses, if needed. Therefore, the premium charges are often on the higher side.
Easy to Switch Between Insurance Companies
People often buy a policy by just word of mouth and still determine how good it will be. Therefore, they want to check the insurance company’s services before going for a long-term contract.
In such situations, if you are in a short-term plan, you will not have to wait for the plan to expire to switch to a better insurance provider. Instead, you can quickly move without waiting for long.
No Claim Bonus (NCB)
Many insurance companies offer no claim bonus for people who have yet to use the amount, even in short-term plans. It is a big motivation for people to renew the policy and not consider it a waste of money.
With the benefit of NCB, people can have either discounted premium or a higher coverage amount if they renew their policy.
Medical Checkup
Just like your long-term insurance plan, short-term plans also often offer the provision of free medical checkups. It is an excellent way of monitoring your health annually and ensuring early diagnosis of diseases.
Tax Benefits
Whether you go for short-term or regular health insurance, you will get the tax benefits for your policy. You can show the premium paid and avail of tax deductions as you get through the long-term policy plans.
Who Should Go for Short-term Plans?
Listed below are situations where you must prefer short-term health plans:
- If you are an NRI visiting India for a trip, you can always avail yourself of a short-term insurance plan. These plans will cover you for any sudden and unexpected health-related issues, accidents, and illnesses.
- If you are in the process of switching to another job and do not want to renew or take the policy given by your existing employer.
- If you are considering switching your insurance company, go for a short-term plan instead of renewing the long-term one. In the meanwhile, research and find the one that is best suited.
So, choose a short-term plan if you can’t go for the long-term. Also, don’t forget to visit the Niva Bupa, the best health Insurance Company website for comprehensive plans for yourself and your family. They have a wide range of health insurance plans available to cater to the needs of every individual. In addition, you can check their website for short-term, family, and regular medical insurance plans.