What is short term health insurance?
Abhishek is 28 years old. He wishes to know what is the difference between short term health insurance plan and regular health insurance plan. Why the premium cost is less in short term health plan rather than regular plan.
According to a doctor, the biggest benefit of having health short term health insurance is that you do not have to wait for it. To be clear there is no waiting period. In regular health plan it is likely to have some waiting period. In other words, the insurance policy company for medical treatment, there is a waiting period also called as cooling period which is called as the Time interval the insurance company are not liable to pay the expenses of the claim. The premium cost of short-term health plan is less because there is more amount of people who do Insurance of this type. So if more and more people choose to have their medical insurance from company, the company will make more profit even though in small amounts but on a large level. This is why the profit of short-term health plan is more and premium cost is less this is how they emphasize on.
One more thing about short term health plan demerit is that this type of medical companies are medical insurance companies cannot increase the amount of insurance. This is why you cannot rely on these medical coverage needs. In opposite to that the regular plan is all legal bounding’s. When you do medical insurance these Medical Company you have to renew to your medical insurance policy even though if you have taken claim in the past. The executive director of ICICI Lombard General Insurance says that it is common that new policy waiting period gets deducted of which the time of old policy has been passed.