When To Go In For Short Term Health Policies

When purchasing health insurance policies, policyholders typically focus on the premium to pay, the network coverage, and the facilities it provides. However, one should also pay attention to the coverage period of the insurance policy. Most of the health insurance policies are for a year, but there are some options available for a longer duration too. At the same time, there are also options for a shorter-term policy, and it is important to take a close look at these policies to see whether they fit your needs. 

A normal health insurance policy is for a period of 12 months or 1 year, and this has to be renewed after this time period. A short-duration policy is one where the time period of coverage is less than 12 months. Normally, such policies are available for a period of 3 to 6 months, though it is not necessary that every insurance company have such an offering. Such a policy's various features are similar to those of a normal health policy, with the only difference being the time period for which it is in operation. At the end of the time period, the person can renew the policy if they want, so there is a possibility of extension for such policies. 

The decision to purchase a short-term insurance policy is based on the fact that sometimes a person may not need insurance for a longer period of time. This is where the short-term policy comes into play, filling the gap when insurance is needed. It ensures that a person does not remain without a cover for the short period of time that coverage is not present elsewhere. It is bought mainly for the purpose of convenience as per the requirement, and the benefit of this is also that the premium for the shorter time period is less, so it becomes more cost-effective. Some temporary needs might arise at any point in time, and this need does not lead to a higher cost for short-term coverage. 

One of the main categories of people who might be using such policies are those who come from abroad to stay in India for a short period of time. There are a lot of non-resident Indians who might have come on a visit for a short time period, and they would require some health coverage during this time period. In such a situation, if they are able to buy such a policy, it would free them from the worry of any medical situation that might require large expenses. There can also be people who are shifting jobs, and if they are relying on the policy coverage from their employer for a part of their total coverage, then there could be a time period when there is less or no coverage available. In such a situation, these types of short-term policies would fill the need at the right time. Ideally, every person should have a separate insurance policy of their own, which will help them in case their employment ends and the coverage ends with it. Sometimes when people are porting their policies, having a short-term cover while that process is being completed might fill in the need. This will ensure that there is no situation where the person remains without a cover and that their needs are met in all respects. 

Arnav Pandya is founder of Moneyeduschool