What Is Short Term Health Insurance: Benefits, Coverage And Who Should Buy It?
A short term health insurance policy provides complete financial coverage for medical treatments undertaken during a shorter time span. The duration usually ranges between 3 to 6 months but can also extend up to a maximum of 12 months. After that, you can renew the policy plan or opt for NCB (No Claim Bonus). Typically, short term medical insurances come with a lower premium amount.
Coverage of a Short Term Health Insurance Plan
The coverage of a short term health insurance policy is mentioned below:
1. Medical check-ups
These medical insurance policies enable patients to undergo regular medical check-ups. This is important for various reasons. It helps the insurance provider to be aware of the health condition of the insured person. Additionally, it also helps in the early detection of serious illnesses.
2. Pre and post hospitalisation expenses
Short term health insurance policies cover the expenses that occur before and after any major planned treatments, like surgeries.
3. Organ donation expenses
There are many short term medical insurance providers that cover organ donations.
4. Ambulance charges
Getting hold of an ambulance for transporting the patient to the hospital is crucial. Many a time, it has been seen that patients suffer or even die because of a delay in the arrival of an ambulance, caused to a lack of cash.
Short term health insurance policies cover the expenses of an ambulance.
5. Hospitalisation
This policy will cover expenses of hospitalisation, like the cost of surgeries, bed charges, OT expenses, medicines, room rent, etc.
Who Should Buy Short Term Health Insurance Plans?
Health insurance policies are crucial for every individual. However, short term health insurance plans are particularly useful for a certain group of people. Here’s a list of individuals who should opt for short term medical covers:
1. People who switch their health policies
The IRDAI provides the option of health insurance portability to policyholders. This provision allows individuals to switch to a specialised health insurance provider as per their choice or requirements. However, a transition from the existing insurance provider can take up some time. Short term insurance policies can be a perfect option to obtain financial cover for medical expenses during this period of transition.
2. Individuals changing jobs
You can opt for short term medical insurance if you are about to shift to a new job. Switching from your current job would mean you would lose out on the healthcare benefits provided by the existing employer. Moreover, formalities associated with joining a new job can take up quite some time. Hence, it would be wise to take up a short term health plan to stay financially secured against health-related expenses throughout the transition period.
3. People visiting the country
Short term health insurance policies are ideal for non-residential Indians (NRIs) visiting the country for a limited period. One can opt for immediate health insurance for financial coverage against expenses incurred for the treatment of diseases or injuries during the stay.
Why Should You Choose a Short Term Health Insurance Plan?
A short term healthcare policy offers coverage for hospitalisation, medical check-ups, diagnostic tests, ambulances, medicines and more. The coverage of a short term plan is similar to that of long term policies. Apart from these, you can also enjoy the following benefits:
Short term policies being valid for a few months would cost you less compared to a full-fledged health plan. Your insurance company would be covering your medical expenses for a shorter period. Hence, you will be required to pay a smaller amount as premiums.
2. No hassle of policy porting
Sometimes an insured individual might not be entirely satisfied with the terms of the current health plan or the services provided. However, he/she might have to wait for the policy to expire in order to port to a new policy provider. With a short term plan, one can easily prevent the hassle of policy porting as it comes with a shorter duration.
3. No claim bonus benefit
Some insurance providers offer NCB benefits on short term health insurance plans as well. No claim bonus is the amount that is added to the sum insured for each claim-free year. The insurance company provides this reward to the policyholders for not claiming insurance.
What are Long Term Health Insurance Plans?
Long term health insurance policies are ideal for people who don’t wish to spend money every year. It is because these insurance policies come with a tenure of 2-3 years. Therefore, they provide coverage for a longer period of time, unlike the regular 1 year-health insurance policies.
Why Buy Long Term Health Insurance Plans?
Given below are the reasons why you should consider investing in a long term health insurance policy:
1. No chance of claim rejection
Often, policyholders face claim rejections because they have forgotten and failed to pay the required premium within the stipulated time.
But long term health insurance policyholders will not face claim rejections on the ground of failure to pay premiums in time. This is because policyholders don’t have to renew it every year.
2. Longer policy period
Long term health insurance policies come with a tenure of 2-3 years. This is particularly helpful for patients who face difficulties in paying premiums annually.
3. No hassle of frequent renewals
Often patients find it difficult to visit the office of the insurance provider to renew an insurance policy. In many cases, senior citizens find online renewals to be an overwhelming process.
In such cases, long term health insurance policies are the solutions. This is because the policyholders are saved from the hassles of frequent renewals.
4. Prolonged treatment
If a patient is undergoing prolonged treatment for a disease, then long term health insurance policies can save them financial worries.
Long Term Health Insurance Policy Coverage
The list of coverages under a long term health insurance policy is as follows:
1. Pre and post hospitalisation
Expenses that occur before and after hospitalisation are covered by this policy.
2. Hospitalisation
Expenses related to surgeries, diseases, illnesses, and accidents are covered.
3. Daycare treatment
Treatments that do not require hospitalisation will be covered.
4. Critical illness cover
Many insurance companies provide a cover for potentially life-threatening diseases like cancer, cardiac arrests etc.
5. AYUSH treatment
Many insurance companies provide coverage for treatments like Ayurveda, Unani, Homoeopathy and Siddha.
6. Add-ons
Many insurance companies provide add-ons like maternity expenses, and room rents based on the requests of the insured.
Also Read: What to keep in mind when buying a health insurance policy
Short Term Plans: How are they Different from Long Term Plans?
Contrary to short term health insurance policies, long term plans come with a validity of 2-3 years. These plans offer comprehensive coverage and include various add-ons such as Room Rent Waiver, Maternity Benefit, Wellness Programs and more. Moreover, a long term health coverage plan is available in different formats: Family floater plan, individual health plan, critical illness plan, senior citizen policy and more.
Here’s a tabular representation featuring the major differences between long term and short term medical insurance:
| Assessing Parameters | Short Term Health Cover | Long Term Health Cover |
| Premium | Comparatively lower | Comparatively high |
| Policy Term | Between 3 months and 12 months | More than 1 year |
| Add-ons | Not available | Available |
| Pre-existing Conditions | Only available in Corona Rakshak or Kavach Plans | Covered in most cases |
| Renewability | Possible when the policy expires after 3 or 6 months | Once the policy expires after 1 or 2 or 3 years |
Things to Consider before Purchasing Short Term and Long Term Health Plans
Points to consider before buying a short term health insurance policy:
- The coverage amount for medical expenses and diseases is less than long term medical insurance policies
- Generally, pre-existing conditions are not covered
- Read the terms and conditions of what is included/excluded minutely before buying a short term health insurance policy
- This policy is ideal to meet medical requirements during a transition period, for example, the portability period, a pandemic, job change etc
Things to consider before buying a long term health insurance policy are as follows:
- The policyholders need to pay lump sum amounts for maintaining the policy and this might be difficult for many people.
- Many insurance providers don’t consider senior citizens for this policy.
- Insurance providers often offer discounts on premiums for long term health insurance policies, so this might prove to be beneficial in the long run
- A long term health insurance policy ensures continuous comprehensive coverage
Also Read: What is Section 80D of Income Tax Act: Deductions for Medical & Health Insurance
Final Word
Short term health insurance policies might not be ideal for every individual. However, they come with certain benefits that are not otherwise found in long term plans. Make sure to assess your medical requirements to find out which plan is best suited for you.
Navi offers short term health insurance plans to cover expenses related to COVID-19 treatment. These plans come with a duration ranging from 3.5 months to 9.5 months.
Enjoy paperless health insurance plans with the support of over 10,000 network hospitals and a 97% claim settlement ratio with Navi. Download the Navi App and get insured in less than 5 minutes.
FAQs
Ans: Short term health plans cost less as they are valid for a shorter period. This means you have to pay lower premiums as compared to a long term plan.
Ans: A short term health plan requires frequent policy renewal and is devoid of options to customise coverage. Moreover, the coverage is less comprehensive as compared to a conventional health policy and does not cover critical illnesses.
Ans: Yes, you may extend your short term health insurance plan to a long term one. However, it will primarily depend on the type of the plan and the clauses of your insurance provider.
Ans: Buying a long-term health insurance policy is a good choice, especially for young people. This is because these insurance policies provide coverage for a lengthier period of time. Additionally, many insurance providers often offer discounts on premiums, so policy-holders have to pay less.
Ans: Short term health insurance policyholders have to pay low premiums. This is because these policies are valid for less time. Moreover, it is the responsibility of the insurance provider to bear the cost of the treatment. The amount that the insured has to pay as premiums depends on the insurance policy. It varies from one insurance provider to another.
Ans: Yes, there are many short term health insurance policies that cover covid-19. Many insurance companies provide short term Covid-19 health insurance plans. Examples include Corona Rakshak plans and Corona Kavach plans.
Before you go…
How about an affordable health insurance policy 👨⚕️ starting at a monthly premium of just ₹235? Install the Navi app now and get your policy in under 2 minutes.
Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
Health Insurance Knowledge Base
