What is the difference between long and short-term insurance?
The easiest way to distinguish between the two is if the contract is insuring a life event relating to a human being, like death, disability, or retirement, it is long-term insurance. Anything else would be regarded as short-term insurance.
What are the main types of short-term insurance?
Common types of short-term insurance are car insurance, medical insurance, building insurance, household contents insurance, single items insurance, and personal liability insurance (where your insurer will reimburse you in certain instances where you are held legally liable for damaging someone else’s stuff). Other types of short-term insurance include pet insurance, business insurance, and travel insurance.