With increasing medical costs and unpredictable health concerns, securing your health and financial well-being with the necessary health insurance is the need of the hour. However, not everyone can afford long-term health insurance, especially young adults.
So, what is the alternative solution? Investing in short-term health insurance plans.
Short-term health insurance is a temporary health cover that offers limited financial protection for a set period to keep your health in check.
In this guide, we will discuss the role and benefits of short-term health coverage and offer tips on choosing the right plan.
What is Short-Term Health Insurance?
A short-term health insurance plan is a type of health insurance that offers temporary financial coverage for a predetermined period, commonly between 3 to 12 months, to help you navigate medical emergencies.
With this temporary health insurance, you only receive limited medical coverage that supports you in times of need till you understand your coverage requirements and are ready to commit to a long-term health insurance plan.
Top Features of Short-Term Health Care Plans
- Temporary coverage
- Coverage period between 3 to 12 months only
- Reduced scope of coverage in regard to severe medical conditions
- Ideal for -
- individuals looking for quick health coverage without long-term commitments.
- Recent college graduates who have yet to assess which long-term plan suits their requirements.
- Employees who have lost their group health coverage and wish to bridge the gap of coverage till the new job begins.
- Individuals looking for instant coverage till their long-term health plan waiting period ends.
Benefits of Short-Term Health Insurance Plans
More Affordable
One of the most significant benefits of short-term health insurance plans is lower premiums. Given that these plans provide limited coverage for a short period, their premiums are lower than long-term plans. This affordability feature makes it easier for anyone looking for budget-friendly health coverage or bridging coverage between plans.
Immediate Cover
As opposed to the waiting periods applicable to traditional long-term health insurance plans, this temporary health insurance option provides immediate cover for your medical needs to ensure your finances are safeguarded in times of need.
Flexible Duration
You can choose any duration that is less than or equal to 12 months for your short time medical insurance. This flexibility ensures you are not tied up with prolonged coverage beyond your requirements. You can choose any duration between 30 days, 3 months, 6 months, or 12 months and enjoy the necessary coverage.
Quick Purchase
The purchase process of short-term health insurance plans is quicker and more straightforward than that of long-term plans. For temporary coverage plans, the requirements are limited to basic documentation, without any additional need for extensive paperwork and medical reports.
Customisation Available
Many short-term health insurance providers allow you to customise your temporary coverage as required. For instance, some may allow you to limit your coverage to any pre-existing medical condition, while others may even offer some add-ons for personalised coverage requirements.
Difference Between Long-Term and Short-Term Medical Insurance
Factors | Long-Term Health Insurance | Short-Term Health Insurance |
Duration of Coverage | More than a year with easy renewability | Less than 1 year |
Premiums | Higher premiums in exchange for extensive coverage | Lower premiums in exchange for limited coverage |
Scope of Coverage | Comprehensive coverage, inclusive of pre- and post-hospitalisation expenses, medical fees and consultations, and chronic diseases | Limited coverage for certain conditions, may not cover various pre-existing conditions |
Purchase Requirements | Necessary paperwork | Basic paperwork |
Waiting Period | Applicable for most inclusions within the chosen plan | Mostly not applicable to any specific coverage |
Ideal For | Individuals who require continuous coverage for long-term healthcare needs | Individuals who require temporary coverage to bridge any gaps between their new and existing policy |
How to Choose Best Short-Term Health Plans?
In addition to understanding the
features of health insurance, both short and long-term plans, you must know the right assessments to conduct in order to choose the most appropriate health coverage for your well-being.
Here are some tips to consider.
Assess your Coverage Needs
The first tip is to always assess your requirements for coverage from a short-term health insurance policy. This will help you determine the necessary policy inclusions you need to make the most of your chosen plan. Things like duration of coverage, lifestyle habits, recent medical situations, etc., must be considered when assessing your needs.
Compare Different Policies
Before selecting any plan, compare quotes and policies from various insurers to get a clear understanding of which plan best suits your requirements. It would help if you compare based on deductibles, benefits, scope of coverage and premiums to find the best fit.
Policy Inclusions and Exclusions
Instead of only considering the premiums when finalising temporary health insurance for your needs, carefully read the fine print of every available plan to assess the various inclusions and exclusions, especially regarding medical conditions or illnesses covered, to cross-check which policies offer what you need.
Review Policy Processes
You must also review the types of processes available with an insurer to purchase, renew, and file claims for a short-term health insurance plan. This will help you compare insurers based on the level of convenience provided and the scope of coverage to aid informed decision-making.
Conclusion
Short-term plans are not a replacement for the necessary
health insurance coverage you require. Instead, they are temporary health insurance solutions for those who need limited coverage for a fixed duration of less than 12 months for instant support.
The end goal is to safeguard your future with a comprehensive safety net to avoid significant financial losses or burdens during unexpected medical emergencies.
Reliance General Insurance, with over 3 crore+ happy customers, prioritises customer convenience and satisfaction. Our various health insurance plans for individuals, families, groups, students, senior citizens and
international health insurance ensure there is something for everyone with ample customisation flexibility for personalisation.
Frequently Asked Questions
Are there any tax benefits of short-term health insurance plans?
Yes, similar to traditional long-term health insurance policies, you can also enjoy tax deductions under Section 80D of the Income Tax Act towards the premiums paid for your temporary health insurance plan.
What are some standard inclusions in short-term health insurance plans?
The standard inclusions with most short-term health insurance plans include the following -
- Emergency medical treatments.
- Pre and post-hospitalisation charges with an upper cap limit.
- Preventive health check-ups.
- In-patient care expenses within the upper limit as per the policy terms and conditions.
- Daycare treatments.