Choosing a health insurance plan is one of the most important decisions you can make in your life. A good health insurance plan can relieve you of significant financial burdens during time of need and really improve the quality of your life. A badly chosen insurance plan, on the other hand, or a plan that does not suit your needs, can actually cost you more money in the long run than if you had no insurance at all. There are many different kinds of insurance plans, each plan suited to different types of individuals.
What is Term Health Insurance?
Term health insurance is a type of insurance that covers you for a finite period of time, as opposed to permanent health insurance, which is not subject to such a limitation. Term health insurance may be short-term, which can provide coverage for a few months up to a year, or long-term, which may involve policies that provide coverage for several years. Regardless of if your insurance is short-term or long-term, your coverage will stop once your policy expires.
What are the advantages and disadvantages of term insurance?
Short-term or long term insurance is generally cheaper than permanent insurance. In some cases, the money spent on premiums for lifetime health insurance may be up to 10 times as much as the costs for short-term insurance. However, with term insurance, if you get sick or even suffer symptoms, your policy may not get renewed, or your premiums may go up. Short-term insurance is not a long-term solution. However, short-term insurance is good for those who may not be in a financially capable position to take out a permanent health insurance policy.
A permanent health insurance policy, on the other hand, cannot be ended by the insurer, regardless of how many claims you make. You will continue to receive benefits, which will be a huge financial relief if you suffer a serious illness or a debilitating injury or accident.
Who should consider getting term health Insurance?
If you are in between jobs, or are a new employee, short-term health insurance may be right for you while you lack a suitable alternative, or while waiting for the coverage for your new policy kicks in. Many short-term insurance policies can be applied for and approved in a matter of days. You may think it doesn’t really matter to spend a few days or weeks without insurance, but remember: hindsight is 20/20. However, if you have the means to do so, you may want to invest in lifetime health insurance. Although you may pay more initially, there will be less hassle involved, and you will have the peace of mind that comes from the stability of a permanent health insurance policy.