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Short-Term Healthcare vs. Long-Term Healthcare

Short-Term Healthcare vs. Long-Term Healthcare

By on Jun 6, 2013 in Blog | 0 comments

Year after year, more and more Americans get hit with various health concerns such as stroke, hypertension, kidney failure, and multiple virus strains. The good news is, almost every illness has a cure nowadays, however the high costs of treatment are inevitable. Having health care coverage would certainly help especially if you’re caught out of funds but if you don’t have health protection, your hard-earned money would just go down the drain.

There are various health care plans available in the market today like what American Delta Insurance provides. It’s just a matter of finding the best plan that suits your needs and within your budget range. Let me give you a generic comparison between short-term healthcare and long-term healthcare so you would know which ones to go for before subscribing to a plan.

Renewal. Short-term healthcare is usually annual-based. The company reserves the right to forfeit a renewal for the succeeding year upon their terms. The great thing about a long-term health plan is that renewal is guaranteed. Once you are approved for a certain policy, the insurance company should enable you to continue your plan unless there are certain breaches with the contract.

Price. Long-term healthcare has a fixed purchase value within the paying period, meaning you only pay what is stipulated on the contract and is not affected by increase in premiums. Short-term coverage is the opposite. The amount that you pay for the succeeding years may vary from what you initially availed of although it’s cheaper than long-term ones, this works well with companies who provide healthcare as an incentive to their employees. We must remember that medical costs increase yearly so the sooner we get protected, the better.

Unused plans? So what if you don’t get to use your plan, what happens to your money? That’s just it, for short-term plans, it goes to waste. It’s not carried over the succeeding year even if you renew your policy. This is where long-term healthcare plans have more edge. So in case you don’t get to use your healthcare plan yet, your fund just accumulates in time.

So before you purchase healthcare insurance, consider these factors first. Assess your particular needs first before signing any contracts you might regret in the end.