subject: Insurance: Short Term Or Long - Which Is Best? [print this page] Health insurance is a concept whereby a person can get paid for his sudden and unforeseen expenses and losses in exchange for a premium paid annually or monthly. Insurance coverage can cover (i.e. pay you back for) some unfortunate or unforeseen incidents such as someones illness, accident, car damage, death etc. Now a days insurance is a complex and popular concept used by almost all adults throughout the world.
Classifications:
An insurance coverage can be of different categories such as health, car, life etc. Though there is another type of classification possible. Namely the short term and long term insurance schemes. An insurance that is short term can provide short term solutions against sudden health hazards (naturally for 30-365 days). On the other hand, long term insurance can be of help for a customer who is looking for long lasting solutions.
Short term insurance:
Short term insurances are good when they are only for the least amount of time possible. Often a person can encounter such a situation when he is transiting between jobs, still a student or one whose previous policy had just ended for some reason. Accidents and illnesses are unpredictable by nature and it is very possible that one can be exposed to such a situation when he is vulnerable for not having a good insurance scheme. In spite of not covering a large area, these are doing unexpectedly good.
Thinking of these situations, people who do not require going through a very long period of time with this arrangement, can seek a short time insurance structure. This is the origin of short term insurance. With cheap health insurance, many people are opting for this type of insurance day by day. Even retired persons are persons who fall less sick are included in the list.
Long term insurance:
These are regular insurances that provide a long tie with the insured person. Though the policy can be tough and expensive, it offers wide coverage over a long period of time. These health insurances are for people who are well established in their career or people who occupy a good post and have a stable job.
The people choosing long term insurance policies, are generally looking for a wide range of cover with a long tie-up that is quite different for short time healthcare insurance. So comparing these may be a good idea.
Which one to Choose
Whether a person should choose a short time health care or a long time one, is completely up to him. There is no right or wrong choice. There is only good or bad. So a person is advised to read all the documents carefully before buying the policy, deciding his own fate.
by: Tim Gaffey
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