Short Term Health Insurance: Pros & Cons

Medical costs are skyrocketing every day. In the present scenario, going without a health insurance plan can be a risk too big to take. Like a bolt from the blue, a single occurrence of a serious illness or a nasty accident may put your life in threat.

Pros and Cons of Short-term Health Insurance Plans

Short-term health insurance plans can be a lifesaver for those who, for any reason, do not wish to commit to a long-term health insurance plan. Health insurance companies have been coming up with a bunch of innovative and economic short-term plans lately for the Indian market. But before you decide to get one for yourself, you should be aware of both the Pros and Cons of Short-term Health Insurance Plans.

Top Pros and Cons of Short-Term Health Insurance Plans

Pros

1. When it comes to short-term health insurance, the primary benefit that they offer is in terms of money. Health insurance affordability is a serious issue for many potential buyers. Short-term health insurance plans are much more pocket-friendly in comparison with long-term health insurance plans.
2. Short-term health insurance plans generally last for a period of upto 12 months. However, the idea is that the buyer is in control and he gets to choose his preferred period of coverage.
3. In India, the private sector, as well as public sector/ governmental organizations, provide health insurance coverage for their employees. Other than that, lots of options offered by health insurance companies are available for people to select a plan for themselves that suit their individual needs the best. Short-term health insurance plans are particularly useful for people who are in between jobs. When an employee is freshly out of an organization and is looking forward to joining another one shortly, they can opt for a short-term health insurance plan for themselves, knowing their future company will provide them with a new long-term cover soon.
4. If you want to get health insurance for your family, then also you must consider the Pros and Cons of Short-term Health Insurance. Most organizations in India do not provide health insurance coverage for their employees' extended family (mother/ father). When it comes to welcoming a new member in the family, be it, spouse or newborn children, it takes time to get their health insurance activated by the organization. For such periods, short-term plans come in handy.
5. Short-term health insurance plans for the self-employed are particularly helpful. The non-committal short-term plans are more useful for them. The premium rate is also lower than their long-term counterparts. It is easier for them to get insured for a particular period, rather than maintaining one for longer periods. In short, it is the best option for anyone who needs a temporary coverage.

The prime pros of choosing this type of health insurance are:

• Acquiring a short-term health insurance plan is easy and fast.
• One can get enrolled within 24 hours.
• Medical checkups are not as thorough as long-term ones.
• The coverage term also starts as early as possible.
• Short-term health insurance plans also save you taxes.

Cons

Short-term health insurance plans do have some limitations compared to long-term health insurance plans and their benefits.

1. One of the main shortcomings of short-term health insurance is that you need to renew your insurance frequently, generally once every year. If you fail to renew your short-term health insurance or buy a new one in time, you will be at risk. Contrary to this, people who go for long-term health insurance plans do not need to go through the struggles and troubles of getting their plans renewed every year.
2. The coverage of short-term health insurances is another drawback. Short-term plans are not valid for pre-existing health conditions or life-threatening diseases. They also do not cover maternity claims. Though most short-term health insurance plans cover surgeries, emergency medical care, hospital stays and costs of drugs, they do not fully cover mental illnesses.
3. When you compare the Pros and Cons of Short-term Health Insurance Plans, you find that they are particularly beneficial for the young and healthy individuals. People who have responsibilities of their families, middle-aged to senior citizens do not benefit from short-term health insurance plans as much.
4. When people opt for long-term health insurance plans, they make themselves free from any worries for an extended period. Since the coverage offered by long-term plans is much wider than short-term plans, they are pretty much covered for everything that may come their way.

In conclusion, we can see that both the Pros and Cons of Short-term Health Insurance Plans exist in a way that it is helpful for a class of people and not-so-helpful for the others. Health insurance affordability is a crucial concern for the Indians. Short-term insurances are cheaper and easier to get, and these facts attract the young citizens to get themselves enrolled in short-term health insurance plans, but when people need better coverage and a hassle-free life, they opt for long-term health insurance plans.