Last Updated on March 24, 2020 by Gopal Gidwani

The more essential it is becoming to look after one’s health, the more people are turning away from this responsibility. It is rightly said that your health is in your hands. Therefore, you should do every possible thing to maintain it. Before you catch hold of any ailments or diseases, make sure that you secure yourself with a good health plan. If you don’t do so, it is going to take a toll on your finances and you will regret not securing yourself beforehand.

Investing in a good health insurance plan will benefit you in more than one ways. You can either buy a short-term plan or secure yourself for the long run by purchasing a long-term health insurance policy.

In this article, we will see the pros and cons of both so that it becomes easier for you to choose.

1) Short-Term Health Insurance Plan
A short-term health insurance policy is valid for a year, after which, you must renew it in order to keep the plan active. People usually go for this plan as the premium to be paid at a given time is less compared to the long-term policy.

Pros
a) As long as you’re paying the premiums every year and keeping your policy active, you will receive equal benefits as the long-term plan.
b) You have to pay a lower premium at one go as compared to a long-term policy.

Cons
a) You need to renew a short-term health insurance policy every year or it will lapse, which means that you will lose your accumulated No-Claim Bonus (NCB) benefits.
b) Short-term plans demand lower premium in comparison to the long-term plans. However, paying a new premium amount every year upon insurance renewal can get expensive if you think of the future. On the other hand, insurance companies sometimes offer attractive concessions on long-term health plans.
c) Maternity benefits may not be included in some short-term health policies.

2) Long-term Health Insurance Plan
Pros
a) You have a safety shield for a good 2-3 years if you opt for a long-term plan.
b) You do not have to face the hassle of renewing your insurance policy every year; you can sit back and relax for a longer term.
c) Pre-existing diseases might also get covered under this plan.
d) If you go for a long-term health insurance policy, many insurance companies might offer you concessions on the premium amount.
e) Although you would have to shell out more in premium at a single time, in the longer run, this would prove to be more cost-effective than having a short-term policy.
f) Akin to the short-term policy, you save income tax even on a long-term health insurance policy.

Cons
a) For some people, paying premium for the long-term might get a little stressful and put them under financial burden.
b) There are few insurance companies that do not cover senior citizens under long-term health insurance plans.

Now that you’re aware of the advantages and disadvantages of both, you can choose one that suits your needs best. When selecting, keep your requirements in mind. If you’re young and can’t afford to invest much into health plans, a short-term plan would be the best choice for you. However, if you can and are willing to invest a little more and secure yourself for a good couple of years, then a long-term health plan would be ideal for you.

You can even purchase a family health insurance plan and insure every member under a single insurance policy. Analyze your requirements and make an informed decision.