Short-term insurance refers to temporary, non-renewable coverage that is generally bought for a certain amount of time (say 12 months) and serves as interim protection. It is popular amongst people facing a huge lifestyle change, such as people between jobs or tertiary graduates.

As opposed to this, long-term insurance is more permanent. It provides continuous coverage and is renewable for numerous years. Cover provided by long-term insurance is much more extensive and comprehensive and include aspects other than unforeseen disasters or illness.

Whereas short-term insurance is attractive because of its low premiums, long-term insurance offers much more expensive premiums. This varies according to the type of cover you buy and the amount of services it includes. With short-term insurance one can get the mitten regarding the deductible. The amount of money you have to pay from your pocket can become very high. This is not the case with long-term insurance. Your excess amount is usually determined beforehand or when you buy the policy. The amount that you eventually pay from your pocket usually are not as high as the deductible paid on a short-term insurance claim.

Long-term insurance is not a very good option for everyone. If you are facing a change in your normal way of life - you are on strike, between jobs, considering early retirement - short-term insurance can look better after your needs, or at least until you have settled in to your new pattern of life. When this has happened, it is advised that you consider long-term insurance. Not only will it come cheaper on the long run, it will also provide more adequate and extensive cover.

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