Difference between short-term and long-term health insurance
Your Guide to Health Plan Selection.
There are many types of health insurance coverage available these days from Zurich Kotak General Insurance. When buying the best policy for yourself and your family, you must understand the scope of coverage offered under each type of plan as only then can you make a proper choice. There are traditional long-term health care insurance policies and more recent short-term covers. What is the difference between the two and who needs what? Let's find out.
Short-term Vs. Long-term health insurance
What is long-term health care insurance?
A long-term health insurance plan is a traditional health plan that offers coverage for a period of one, two or three years. It has a traditional policy period and you get all the covers for that period, after which you need to renew the plan to enjoy uninterrupted coverage for as long as you want.
What is short-term health insurance?
Short-term health insurance plans offer coverage for a fixed amount of time, which is lower than the traditional plans. You can get coverage for a period under one year, which can also be as little as three or six months. These plans work to cover a specific health threat or work as a gap when you are between policies. Covid-19 health covers are a prime example of short-term health insurance plans.
Who needs long-term health coverage?
In one word, everyone! Long-term care health insurance is traditional health insurance which is required by one and all. It is the type of health insurance that offers continuous and uninterrupted coverage at all times and covers a wide number of medical conditions.
Who needs short-term health coverage?
Short-term coverage offers health insurance for a set period of time. If you are in between jobs and have temporarily lost your group health insurance coverage, you can rely on short-term health insurance for the interim period. If you want specific coverage such as COVID coverage, you can opt for a short-term plan that specifically covers that health condition. Assess your needs and see whether you need such a cover or not.
Key differences between short and long-term care health insurance
Duration:
A short-term health insurance policy is typically available for a period under 12 months. It can be three or six months. An extended care insurance plan has a traditional policy period of one, two or three years.
Cost:
The premium of a short-term cover is lower as compared to a long-term cover.
Scope of coverage:
The scope of coverage is usually greater in an extended care insurance policy. You can even get coverage for pre-existing health conditions and special benefits such as maternity benefits after you exhaust the waiting period. Such covers and benefits are not available in the short-term health insurance plans.
Conclusion
As you can clearly see from the points mentioned above, there are some very basic differences between short-term and long-term care insurance. Analyse your requirements and then decide on the type of policy you need. There are some excellent options from Zurich Kotak General Insurance’s health insurance, so choose wisely.
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