An insurance with short term planis given for a short period of time. The policy term will generally be for a year or a few months. You can choose this life insuranceshort term plan for expenses that can be utilized after a few years of investment. Insurance policies with short terms are available for life and health insurances. These policies give the benefit of low premium costs.
You can easily join an online life insuranceshort term plan with the various IRDA certified insurance companies. However, theseshort term policiesmust be utilized within the maturity of the policy. So you must be clear in your choices while selecting an insurance policy.
What are the different short term policy plans in life insurance?
A life insurance ensures that you have a monetary fund for your family during your death. It can also be utilized for educational purposes. This will act as a source of income after your retirement. A life insuranceshort term plan quote has the following benefits:
▪ Low premium: The life insuranceshort term policy is capable of ensuring you with low premium. It is a way of having an insurance even in critical financial conditions. The payout may be low as it is for a short period. Make sure you claim at the right time to enjoy benefits.
▪ Multiple options: These short term policiesof life insurances may be available for a period greater than a year. You can choose a 5-year policy too.
▪ Benefits small families: Small families will be the most benefited with such short term plans. The low premium will keep the entire family covered. It is very beneficial for young families too.
▪ Easy to understand: The short term plans are very easy to understand. You just need to select an insurance cover, the term, and the insurer.
What are the short term plan policies in health insurance?
A health insurance is provided to cover your future medical expenses. There are a few benefits for short term plans too.
✓ Low premium rates: Like life insurance, you enjoy low premium rates with short term policyfor health insurance.
✓ Benefits for young and healthy families: Compare life insuranceshort term plan for a healthy family. It is better than a long term policy.
✓ Tax deduction: The best life insuranceshort term plan gives you tax deductions under Section 80 (C). So you can also save the tax amount along with low premium.
Things to remember
1. A short term planis crucial for a small and young family. For elderly citizens, a short term plan may not be very beneficial as they have increased health issues and needs.
2. You must claim the insurer once the term of the policy is over. Otherwise, you will have to lose the no claim bonus. No claim bonus is a bonus given by the insurer towards the end of a policy.
3. Not all medical expenses are met by the onlinelife insuranceshort term plan policy. Claims for already existing diseases and for maternity may not be considered.