The term insurance policy refers to a contract that is concluded between two sides, the owner of the policy and the insurer. The insurer is the company which sells the insurance policy and provide the benefit in case of accident and the owner is the one that buys this policy. There are many types of insurance policies. You can obtain insurance policies in case of accidents, to cover your life, death, health, car, home, kids, etc. The insurer company pays an agreed amount of money in case of occurrence of any accident or issue that is covered by the insurance policy. The owner of the policy from his side regularly pays a monthly or yearly agreed sum of money. Short term insurance is usually for one year or less than one year and it is more expensive than the long term insurance.
Short term insurance is usually intended for periods when you are between two jobs, or when you rent a car and you don’t want to be responsible for any damages on the vehicle. Basically there are three types of short term insurance: Short term auto insurance, short term health insurance and disability insurance.
Short term auto insurance, is temporary insurance on a vehicle, and usually does not last for more than one month. People take short term insurance when they want to protect themselves against damages and any responsibility in case of accident. For example, you might decide to obtain short time insurance in case of renting of borrowing a vehicle. Another instance is when you buy a car for a short period of time for example, one month travelling and at the end of the travelling you intend to sell the car.
Short term health insurance, is intended to cover and provide health insurance in case of any illness in a period of time from one year up to six months. This insurance is usually renewable for up to 36 months. This short term insurance is for instances when you are changing jobs, you have lost your job or you are going on a travelling. Although the period of time for this insurance is short it still coves a wide range of illnesses and procedures.
Disability insurance is a short term insurance, that is intended for periods when you are not able to work due to injury or you are disabled to work. Disability insurance provides full security in this period when you are not able to work. During this period usually 40-65 percent of the monthly salary is paid, but only after awaiting period of two weeks. This period sometimes can be longer and it is specified by the company that provides the insurance. Having insurance is very important part of every person’s life because one never knows what surprises life brings..
