Most people avail life insurance policies from a very young age for a long tenure. When we are young and fit, the premium costs are lower. This keeps increasing as we age. While it is advisable to avail a long-term life insurance policy, you can even opt for short-term insurance at a later age, probably after you retire, for a relatively lesser term of 5 to 25 years.

What is Short-Term Insurance?
As the name suggests, short-term insurance is a type of term insurance that is taken to meet temporary or shorter needs. The term is the primary difference between regular term insurance and short-term insurance policy.

Why do you Need Short-Term Insurance?
Generally, people obtain life insurance from a long-term basis and do not think of it as a short-term financial safety net. However, there may arise a situation when you may require a short-term life cover. This can be due to varied circumstances, such as during your retirement, after your retirement, if you go on strike, sudden lay-offs, or even if you visit a specific region prone to natural calamities. 

Most insurance companies provide short-term insurance policies, and anyone can avail it at any time. Though there are no complex term insurance criteria for the purchase of short-term insurance, there are certain qualifications

Qualifications for Short-Term Insurance

1. If you are healthy and fit or need to look after your family or have responsibilities, you can avail this plan. Even if you have limited means, you can opt for it since premiums on this are relatively lower as compared to traditional term insurance.
2. Generally, the maximum age at most insurance companies to avail short-term insurance is limited to 60 to 65 years of age. However, the same can vary for policies and insurance companies.
3. In certain cases, you may be asked to undergo a health check-up, especially if you have a serious medical history or pre-existing illnesses.

Points to Remember before Buying Short-Term Insurance Policies

1. Renewal Option
   There is no restriction that such term insurance cannot be renewed for a further term, even post completion of the specified term of 5 or 25 years. You have the option to renew your short-term insurance any time.
2. Premium Change
   Most long-term insurance policies have a fixed premium that you need to pay throughout the entire term. However, in short-term insurance, you can change the premium depending on different factors such as mortality, earning, tenancy, and so on.
3. Planning
   If you are burdened by immediate financial stress or feel your demise could push your family under duress, these plans help you plan your family’s future; thereby, offering you peace of mind.
4. Benefits
   This type of term insurance offers you a large number of benefits in terms of tax benefits under Section 80 C, death benefit where the nominee can claim the sum assured, and also claiming benefits under additional riders which you may have added to gain extra coverage. Further, like regular insurance, short-term insurance also provides your family financial coverage for handling finance costs and other payments if you are not there. You also have a surrender benefit attached to these plans whereby, you can choose to surrender your policy before maturity. You can even avail loans against this policy.
5. Zero Survival Benefit
   Though short-term insurance provides you with a large number of benefits, there is no survival benefit which you can claim under it. This is the reason most people shy away from the product. However, it is necessary to understand that the purpose of short-term insurance is only for a shorter tenure and its relatively lower premiums make it viable for safeguarding your family’s financial future and interest.

Conclusion
Depending on your immediate requirement, you can compare and choose the right term insurance plan for you, regardless of your age or gender. Due to its pure nature of providing dedicated life cover, long and short-term insurance are viewed as vital financial security measures or safety nets instead of mere investment instruments to save tax. Browse the website to know more about Term Insurance and the various Term Plans offered by PNB MetLife.

*Tax benefits are subject to conditions and other provisions of the Indian tax laws and are subject to amendments made thereto from time to time.