Mika
VIP Contributor
Based on the maturity period of insurance policy, insurance can be broadly divided into two types: Short Term Insurance Policy and Long Term Insurance Policy.
What is Short Term Insurance Policy?
Short Term Insurance Policy is a policy that has a maturity period of 1 year. Normally, Short Term Insurance Policy covers the areas such as health insurance, auto insurance, business insurance, house insurance etc. You will have to renew the policy every year. If nothing happens during the insured period, you do not get any benefits.
What is Long Term Insurance Policy?
Long Term Insurance Policy is a policy that has a maturity period of 5 years, 10 years, 15 years, even 20 years. Generally speaking, Long Term Insurance Policy covers life insurance. You will have to pay the premium annually until the maturity period and then get the benefits.
What is Short Term Insurance Policy?
Short Term Insurance Policy is a policy that has a maturity period of 1 year. Normally, Short Term Insurance Policy covers the areas such as health insurance, auto insurance, business insurance, house insurance etc. You will have to renew the policy every year. If nothing happens during the insured period, you do not get any benefits.
What is Long Term Insurance Policy?
Long Term Insurance Policy is a policy that has a maturity period of 5 years, 10 years, 15 years, even 20 years. Generally speaking, Long Term Insurance Policy covers life insurance. You will have to pay the premium annually until the maturity period and then get the benefits.