When purchasing a health insurance policy, it is entirely your choice whether to get a short-term health insurance plan for three to six months or a long-term one for more than a year. Your medical needs and the length of time you desire to receive benefits should be considered when selecting.

It serves a purpose if you have long-term health insurance, such as a family floater or critical illness plan. But in addition to other short-term plans, short-term COVID-19 health policies have also been introduced by insurers to address the coronavirus pandemic.

Therefore, knowing the distinction between the two is helpful before you make a purchase of health insurance apps. It’s best to compare long-term and short-term health insurance in India to select an appropriate health plan for yourself.

Insurance for the long term v/s the short term:

A long-term medical insurance plan covers you for two to three years. Additionally, a short-term health insurance plan necessitates regular renewals due to its short validity. The differences between these two choices are listed in the following table:

Long-Term Health Insurance Policy *

• Comparatively higher premium
• Renewability is available after the policy’s last date or after one to three years
• Pre-existing conditions are generally covered
• Available add-on covers

Health Insurance for the Short Term *

• 3 to 6-month policy term
• Comparatively lower premiums
• Can be renewed 3 to 6 months after the last date
• Only under the Corona Kavach and Corona Rakshak Plans are pre-existing diseases covered.
• No add-on covers

Who Should Purchase a Temporary Medical Insurance Policy?

Short-term health insurance coverage is the best option for temporary insurance needs—the COVID-19 pandemic, a career change, etc. During the transitional period, short-term medical plans assist in bridging the brief gap in medical coverage.

These plans’ durations range from three months to a year.

They are a great way to pass the time and maintain coverage while switching health insurance plans and during the portability period.

Short-term health plans cover unexpected medical emergencies. NRIs studying here should have short-term health plans.

When these plans were first introduced in 2020, they were not renewable. However, noting the demand for and necessity for short-term COVID health plans, the renewal deadline has now been postponed until September 2021.

Another reason people choose short-term health insurance policies is the inexpensive premiums they must pay. Additionally, you receive tax advantages on the coverage premiums, as mentioned under Section 80D of the Income Tax Act of 1961. **

Who Should Purchase Long-Term Medical Insurance?

Everybody can benefit from a long-term health insurance policy. The purchase of a long-term health insurance plan has various advantages. First, you have a choice between a 1-year and 3-year policy duration.

You don’t need to worry about frequently renewing your coverage. However, if you have a short-term plan, you must renew it frequently to keep the “Cumulative Bonus” gained for not making a claim throughout the policy period.

The sole difference is that long-term health insurance premiums are more expensive than short-term health insurance plans, which are more cost-effective. Because the benefits are more widespread and last longer, the price is higher. Individual health care plans for the long term also cover policies for a critical sickness, women’s health insurance, maternity coverage, etc.

And if we look at the coverage benefits provided, long-term medical insurance policies offer more benefits than short-term plans. We are all aware of the importance of health insurance in India, whether it be for long-term or short-term health plans. *

The Bajaj Health Insurance app provides both kinds of coverage, whatever your needs may be. 

Simply head to the health insurance app to make a well-informed decision.

Caringly yours, Bajaj Allianz Policy.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

‘Insurance is the subject matter of solicitation.’ For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘