Xiao Nuo answer:
Hello!
The insurance period below 1 year is called short-term health insurance, and the insurance period over 1 year is called long-term health insurance. The insurance period of common health insurance products on the market is mostly 1 year. The main reasons for this provision are as follows:
1. The purity of the nature of health insurance ensures the short-term insurance period. Because health insurance pays more attention to the compensation of the insured's disease risk, and basically does not have the nature of saving and investment, and does not need to rely on long-term capital operation to obtain income, most of them appear in the form of 1 year during the insurance period.
2. The probability of disease occurrence is closely related to the age of the insured, and the compensation standard needs to be changed frequently. Generally speaking, the older the insured, the higher the probability of illness and the higher the cost of health insurance. People of different ages need to pay different insurance premiums to participate in health insurance, which changes with age. The insurance period is set at one year, which reflects the fairness of the insured's participation in insurance.
3. It is convenient for insurance companies to simplify financial accounting and determine scientific insurance rates. For insurance companies, short-term health insurance is accounted for once at the end of each natural year. The insurance period is 1 year, which is convenient for insurance companies to master profit and loss data and operating conditions and formulate appropriate rate standards. At the same time, health insurance is greatly influenced by the medical market, and the insurance period is short, which enables insurance companies to adapt to the changes in the medical market, understand the market situation and develop new products.