Short term insurance as the name suggests it is the insurance for a particular period of time which the insurance holder needs. Life insurance does not come under this group of insurance policies. Life insurance policy is a long term policy in which the policy holder gets benefitted even if his life is not under risk. But most of the short term policies are not like that.
Short term insurance policies like insurance for car, bikes, house, property etc cover the insurance for the specific property and if no damage is incurred then there is no benefit for the policy holder. But this can be said as the risk free insurance because it makes the policy holder to stay risk free. Until his property is insured any accidents or loss incurred will be compensated by the insurance company.
In short term insurance such as http://incominghealthinsurance.com/short-term-insurance/ certain factors are considered for fixing the premium rates. Those are the value of the property, its age etc. For insuring a car or any vehicle factors like driver’s age, sex, his driving histories, where he parks his car, whether it is a protected place etc are noted and then based on these factors the premium rates are fixed. If the risk factor is found to be high then the premium rates also grow high. This is the basic of any short term insurance policies.
It is also important to note that when any damage happens to the property insured not the whole 100 percent of the money can be claimed by the insurance holder. A percent of money could be claimed which is provided by the holder and any money excess should be managed by the policy holder.
There is also short term health insurance which is very flexible for the policy holders. Any person who is in search of the job or in the transition period between two companies he can take this short term health insurance. In this case the short term insurance gives him the freedom of going to any private doctors of his own choice and taking the treatments. In this way short term insurance provides much benefits and flexibility to the insurance holders but people should compare and select the best policy agents and find out which suits him best.
Boman Rustom Irani is Chairman of Rustomjee Group. To know more about him visit his Blog