General insurance Short Term Insurance vs. Long Term Insurance Policy

[Mika]

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.

 

[Mandy96]

I have always preferred the short term life insurance due to the fact that it is a policy where you will get your compensation while you are alive unlike the other one. This can also be called an investment because you will get to invest your money which is the premium and eventually get it later with definitely interest of course

 

[Phabbyfundz]

This has been a really enlightening piece of work and I would really like to commend for bringing up this topic of discussion as a lot of person are still not informed or aware that there exist in insurance the long term insurance and the short term insurance policy and both serve different purposes.

 

[Nite]

As the name suggests, Short term insurance policy is a cover that'll only be for a set amount of time. Long term insurance policy is about big, life changing events, where you'll have to pay a monthly premium, and your insurer pays out a lump sum when the event you're insured against happens. One has to decide which suits them better.

 

[Wisdom01]

Thanks for the clarification , to me I will pick a short term insurance policy considering the fact that most times there could be difficulty in paying insurance premium and once it's short term you could easily sort it out and get your benefit at the end unlike the long tern

 

[Jasmine]

I have a short term insurance for my bike. I have a long term life insurance policy. Short term insurance is mainly for non-life insurance, where as a long term insurance is mainly for life insurance. However, there are also short term life insurance policies such as health insurance, and body parts insurance.

 

[Chibson]

It depends on the kind of insurance it is because personally i would choose whole life insurance if it is in that category of insurance that i'm enrolling on. this is because it comes with a whole lot of benefits which will be profitable to you and your family members as the case may be.

 

[Jasmine]

Whole life insurance will benefit only those who have a family to look after. You will have to pay premiums for life time, or possible for many years, and will get the benefit only when you did. Term life on the other hand will give benefits in your own life time.

 

[sincerem]

I believe one can simply choose any term and different premiums to safeguard for any circumstances in the future. Having premium for short term and long term at same time via different premium packages can protect the insured. The only downtime is the money to fund it, when an individual have enough then it is reasonable to choose as much as he or she can.