Difference Between Long & Short Term Two-wheeler Insurance (2023)

Two-wheeler insurance policies act as a cover by offering financial protection during the time of crisis, especially when you meet with an unfortunate accident. Vehicle insurance enables you to recover financial losses caused due to unfortunate circumstances.

It could be a cumbersome task when you have to renew your bike insurance policy every year as you’ll have to remember the renewal date to ensure the premium is paid on time. If you miss renewing the policy, it leaves your two-wheeler uninsured and you’ll be found violating the law.

Since you have decided to get a two-wheeler insurance policy, you may be confused between several choices in the insurance market, and unable to decide on the right insurance policy for you.

Insurance policies for two-wheelers are classified into long-term and short-term. Both policies offer security and accident cover. But, which is the best or the most suitable insurance cover for your two-wheeler? Let’s understand the two different types of bike insurance plans before you make an informed choice.

Difference Between Long & Short Term Two-wheeler Insurance (1)Difference Between Long & Short Term Two-wheeler Insurance (2)

What is the Difference Between Long-Term and Short-Term Two-Wheeler Insurance?

It’s obvious from the name, the difference is the policy term or period. While short-term two-wheeler insurance policies offer coverage for one year and require to be renewed annually, long-term two-wheeler insurance policies offer coverage of up to 5 years. As per the new rule, new two-wheelers must be insured with a 5-year Third-Party policy. A long-term policy removes the hassle of renewing your policy every year and keeps you shielded from the consequences associated with the expiry of the policy for a longer period.

Along with the extended coverage advantage, here are other differences which sets them apart:

Policy Renewal Date:

As mentioned, you’ll have to pay the premium just once in three or five years, saving you from policy lapses. While long-term policies’ renewal date is once in three or five years, short-term policies have to be renewed every year.


You can revisit or modify your bike insurance in short-term two-wheeler insurance policy every year and take advantage of any offers and discounts. Or, you could choose from various Add-ons such as Zero-depreciation, No Claim Bonus Protection, etc. Hence, short-term policies offer better flexibility compared to a long-term two-wheeler insurance policy.


A long-term bike insurance policy is cost-effective as it avoids any increase in the annual premium which could be imposed by the Insurance Regulatory and Development Authority of India (IRDAI). Also, most of the insurance companies offer discounts on premiums charged on long-term policies. If you want a cost-effective solution, the long-term two-wheeler insurance policies will save you money.

Short-term insurance policies are prone to price hikes on a yearly basis; however, if you plan your finances better, you can avoid the increase in pricing of your bike insurance annually. You can choose the long-term insurance cover as the premium amount is fixed at the beginning of your policy, hence, you don’t have to pay a hiked premium every year.


Short-term bike insurance policies provide you with more Add-ons. These are riders along with your insurance cover for your bike such as Zero-Depreciation, Return to Invoice, NCB Protection, etc. Compared to long-term insurance, short-term policies have an advantage when it comes to including riders to your policy as you have the option to include these riders every year.

Also, read: Third Party Two Wheeler Insurance

NCB Benefit:

Long-term insurance policy is offered with higher quantum of NCB discount compared to a short-term insurance policy. The discount can go up to 20% for the first claim-free policy year. For short-term bike policies, you still get the benefit of NCB; however, the time frame for not raising any claim is much shorter. While you still get a discount, it’s comparatively lower than long-term insurance policies for two-wheelers.

Own Damage (OD) Premium Rates:

As a long-term bike insurance policyholder, you enjoy perks offered by the insurer since you have a long relationship with them. Insurers offer discounts on Own Damage which helps you reduce the cost borne when the policy is issued. However, for short-term bike insurance, OD discount does not apply at all.

Old Vehicles Vs. New Vehicle:

If you have an old two-wheeler which might not last more than 3 years, short-term insurance policy is meant for you; however, if you have a new vehicle which will last more than 3 years, long-term two-wheeler insurance should be your choice.

Benefits of Buying Long-Term Two-Wheeler Insurance:

The IRDAI has approved insurers to offer long-term bike insurance policies to customers in an effort to stop the menace of non-renewal in short-term insurance coverage. This also encourages you to buy the mandatory third-party insurance policy. As for the long-term policy, you can choose to buy the 3 or 5 years cover as compared to the regular policy of 1-year.

Below is the list of benefits of long-term bike insurance:

  1. Hassle-free process.

  2. Discounted premium.

  3. Higher NCB

  4. The policy does not expire before 3 years.

  5. Avoid issues of renewing the expired policy.

  6. Discount on Own Damage premium.

  7. Premium amount fixed for 3 years.

  8. NCB remains intact and will not drop in case of a lapse in renewal.

How to Choose the Right Bike Insurance Plan?

Both the long-term and short-term bike insurance policies have their advantages and disadvantages. While the long-term is cost-effective and hassle-free from annual renewal, short-term insurance policies provide more flexibility when you renew the policy every year.

Hence, if convenience and cost-effectiveness make more sense to you, then the long-term two-wheeler insurance policy should be your choice. Or, if you want more flexibility and precise protection, then short-term bike insurance policy should be your choice.

FAQs About Long-Term and Short-Term Two-Wheeler Insurance Policy:

Below are some frequently asked questions about long-term and short-term bike insurance policy:

What is a comprehensive two-wheeler insurance policy?

Difference Between Long & Short Term Two-wheeler Insurance (3)

A comprehensive bike insurance policy offers financial protection in case of any impact damage, fire, theft, earthquake, etc. Additionally, it covers against any third-party liability in case of bodily injuries, death, and third-party damage.

(Video) 2017 Two Wheeler Motor Term Insurances | Long Term Or Short Term Motor Insurance For Two Wheeler

What are the different types of insurance policies?

Difference Between Long & Short Term Two-wheeler Insurance (4)

There are two types of insurance policies for two-wheelers – comprehensive and third-party liability.

What are the types of long-term policies available for two-wheelers?

Difference Between Long & Short Term Two-wheeler Insurance (5)

For brand new two-wheelers, you can choose from the below-mentioned options:Liability only policy for a term of 5 years: This type of policy is known as third-party insurance, which offers cover against any third-party liabilities such as death, bodily injuries causing disability, or third-party damage.Package Policy for a term of 5 years: This type of policy offers comprehensive cover to your two-wheeler due to any impact damage, theft, fire, earthquake, etc. Additionally, it offers cover against third-party liability.Bundled Policy for a term of 5 years: This type of policy offers cover Own Damage and 5-year third-party liability.For two-wheelers which are more than one-year-old, you can choose the Liability Policy or the Package Policy.

Is it mandatory to take the third-party liability insurance for two-wheelers?

Difference Between Long & Short Term Two-wheeler Insurance (6)

Yes. As per the Motor Vehicle Act, all vehicles plying on Indian roads should be insured with the liability policy.

How to pay for a two-wheeler insurance policy online?

Difference Between Long & Short Term Two-wheeler Insurance (7)

Paying your bike insurance amount online is hassle-free and easy to process. You can pay it online via net banking, credit card, debit card or you could use a mobile wallet.

What is NCB?

Difference Between Long & Short Term Two-wheeler Insurance (8)

NCB or No Claim Bonus is a discount or incentive offered by your insurance company for driving carefully and not raising any claim during the policy period.

I have an existing bike insurance policy. Can I buy new bike insurance from a different insurance company?

Difference Between Long & Short Term Two-wheeler Insurance (9)

Yes, you can buy a new insurance policy from a different insurer, if the expiry date of your existing policy is less than 60 days from today. The new insurance policy will be effective after the expiry of your existing policy.

What information should I provide while raising a claim?

Difference Between Long & Short Term Two-wheeler Insurance (10)

You can register a claim either through the insurance company’s website or call their toll-free number to report the incident. While raising the claim, you need to provide your contact number or the bike registration number, details of the incident and photographs of the two-wheeler is possible, and FIR in case of theft, or any third-party loss.

How to find my bike insurance policy number?

Difference Between Long & Short Term Two-wheeler Insurance (11)

Your bike insurance policy number on the policy document or if you have chosen an online insurance provider, you can log in to your account and find your bike insurance policy number.

How to renew two-wheeler insurance online after it expires?

Difference Between Long & Short Term Two-wheeler Insurance (12)

(Video) Term Vs. Whole Life Insurance (Life Insurance Explained)

Insurance companies offer a grace period after the expiry of the policy within which you need to renew your bike insurance policy easily; however, you cannot raise any claim during this grace period as the policy is considered inactive. The process to renew a lapsed bike insurance policy is:1. Review your policy and make changes if required at the time of the renewal.2. Log in to your insurance company’s website and enter information related to your bike and the previous insurance policy.3. Choose the type of two-wheeler insurance policy.4. Set the IDV (Insured Declared Value) and choose Add-ons as per your requirement.5. Make the payment.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

Explore More:

  • NCB in Two-Wheeler Insurance

  • List of Add-on Covers In Bike Insurance

  • How to Find the VIN, Chassis Number and Engine Number of Your Bike?

  • Scooter Insurance

More articles on bike insurance

Difference Between Long & Short Term Two-wheeler Insurance (13)

Best Two Wheeler for Ladies

Factors To Decide Bike Insurance

First Party Bike Insurance

How to Check Bike Insurance Expiry Date/Status Online?

Scooter Insurance Claim

Personal Accident Cover in Bike Insurance

Get Duplicate Bike Insurance Copy Online

Bike Chassis Number Check Online

Things you should Check if your Bike is not Starting

Important Factors to Compare Bike Insurance Online

Check Bike Insurance Status Online?

(Video) Motorcycle Insurance is a Scam!

Essential Tips To Buying A Motorcycle Helmet

Things To Keep In Mind While Relocating Your Bike

Teflon Coating for Bike

How to Change Owner Name in Bike Insurance?

Is Bike Insurance Mandatory for 5 Years?

How to Claim Bike Insurance After Accident?

Change Address in Bike Insurance Policy Online

Difference Between Fuel Injection and Carburetor in Bikes

Tips to Extend the Lifespan of Your Motorcycle

Explore more on bike insurance

Difference Between Long & Short Term Two-wheeler Insurance (14)

Best Two-Wheeler Insurance

Bike Insurance in Mumbai

Electric Bike Insurance

Old Bike Insurance

Scooter Insurance

Bike Insurance Calculator

(Video) Short Term Car Insurance

Long-term Two-wheeler Insurance

Cashless Bike Insurance

Comprehensive Bike Insurance

Renew Expired Bike Insurance

Bike Theft Insurance

Bike Insurance in Hyderabad

Bike Insurance in Bangalore

IDV in Bike Insurance

New Bike Insurance

Own Damage Bike Insurance

Comprehensive Vs Third Party Two Wheeler Insurance

Third Party Bike Insurance

Bike Insurance Claim Settlement Ratio

Two Wheeler Insurance Claims

Difference Between Long & Short Term Two-wheeler Insurance (15)Difference Between Long & Short Term Two-wheeler Insurance (16)

Want to post any comments?

Difference Between Long & Short Term Two-wheeler Insurance (17)Difference Between Long & Short Term Two-wheeler Insurance (18)


Difference Between Long & Short Term Two-wheeler Insurance? ›

While short-term two-wheeler insurance policies offer coverage for one year and require to be renewed annually, long-term two-wheeler insurance policies offer coverage of up to 5 years. As per the new rule, new two-wheelers must be insured with a 5-year Third-Party policy.

What's the difference between short term and long term insurance? ›

Short Term Health Insurance Plans, are valid for a shorter duration of time as compared to a long term plan. Both plans offer similar coverage, but the validity of a short term plan is less. The policy period for such plans is usually less than 12 months.

What is long term two wheeler package policy? ›

As the name suggests, a Long Term Two Wheeler Insurance policy gives you and your bike a 360-degree cover against losses suffered due to damage or theft of the insured vehicle for 2 or 3 years as per the cover opted. And this is over & above the coverage for third party liabilities.

What is the difference between short term insurance? ›

Short term insurance is a policy you have with an insurer and includes all types of insurance with the exception of life insurance (long term insurance). The policy is valid for a limited time period and covers areas like car insurance, business insurance, home contents insurance, travel insurance and pet insurance.

What is short term insurance? ›

Essentially, a short-term insurance policy is an agreement between a policyholder and an insurer that is in place for a limited time. Your insurance needs for these possessions will change over time, too. The policy can be flexible to provide enough cover for different circumstances.

Which is more expensive short-term or long term? ›

Short-term financing is somewhat riskier than long-term, but it also tends to be less expensive and offers greater flexibility to the borrower. Both the increased risks and the lower rates are due to the potential for future interest rate fluctuations.

What are the disadvantages of short-term insurance? ›

These are some potential drawbacks of short-term health insurance: Short-term coverage may not offer any benefits for maternity, mental health, or any sort of pre-existing condition. If you suffer from some pre-existing conditions, you could be denied coverage, unlike with Obamacare.

What is two-wheeler package? ›

It covers the damages against third party property, bodily injury and death to the third party due to an accident caused by your two-wheeler. It also covers the insured (owner driver) against accidental death or permanent/temporary disablement.

What is meant by two-wheeler insurance? ›

Two-wheeler insurance is a type of insurance that is mandatory in India. Falling under the General insurance product category, it helps protect people against accidents that take place on the road.

What is an extended term rider insurance? ›

What is an LTC rider? A long-term care life insurance rider is a policy addition that slightly changes how your life insurance works, allowing you to use part or all of the policy's death benefit for long-term care while you're alive.

How is short-term cost different from long term value? ›

The main difference between long run and short run costs is that there are no fixed factors in the long run; there are both fixed and variable factors in the short run. In the long run the general price level, contractual wages, and expectations adjust fully to the state of the economy.

What is the purpose of long term insurance? ›

Long-term insurance products offer benefits against dying, disability, severe illness and the cost of a funeral. Benefits are offered individually or to employer groups. The conduct of insurers is regulated under the Long Term Insurance Act.

What is the advantage of short-term insurers? ›

Even short-term policies offer various benefits such as income tax benefits, death benefits, low premiums, add-on covers, etc. Protect your family for a short duration and invest in some long-term insurance policies once you have the budget.

Why do I need short term insurance? ›

Short-term insurance is a policy that provides coverage for a limited period of time. It is designed to provide temporary protection against risks like car theft, household goods damage, property damage, expensive medical procedures in hospital, protection against personal injury or liability claims, and more.

How long does a short term policy last? ›

Short-term insurance is health coverage typically available for limited durations of 365 days or fewer. Depending on where you live, you may be able to renew a short-term policy or purchase another short-term policy for coverage up to a cumulative 36 months.

Why is short term insurance so cheap? ›

Since short-term plans do not have to cap patient out-of-pocket costs like ACA-compliant plans, they can be purchased with very high deductibles and lower premiums. Dollar limits on coverage. Short-term plans can and generally do impose annual limits on benefits, which results in lower premiums.

Why is long term better than short term? ›

Long-term investors may enjoy less risk due to the fact they have more time for their portfolios to make up for potential losses. Meanwhile, short-term investors may want to avoid volatile investments, such as some riskier stocks or stock mutual funds.

What is considered long term vs short term? ›

Short-term investments are held for less than a year, while long-term investments are held for a year or longer.

How many years is short term and long term? ›

Typically, short-term goals are defined as accomplishments that take 3 months to a few years. Long-term goals are usually completed in 3 to 5 years, or longer.

What are five examples of short term insurance? ›

These are the most common types of personal short-term insurance policies
  • Vehicle cover.
  • Property cover.
  • Household cover.
  • Personal liability.
  • All-risks cover.

What are examples of short term insurance policy? ›

Some examples of short term insurance are: Homeowners or Buildings Insurance : Insurance of your home (the building itself) against damage. Motor Vehicle Insurance: Insurance of your motor vehicle against damage, fire and theft. Household Contents Insurance: Insurance of the contents of your home against damage and ...

What is a disadvantage of long term plan? ›

Long-term drawbacks

The sheer amount of variables, both internal and external, that can impact progress can lead to short-term wins being overlooked. Equally, any misses can lead to overcompensating, and putting undue stress on ourselves and our colleagues. Second, it's really hard to plan for the future.

What is the meaning of liability only policy for two wheelers? ›

Liability Only Policy is a type of car insurance where the insured and his/her vehicle is not covered but only the Third-party and his/her property. All vehicles that use the public roads in India should have Third Party Liability Cover.

How much is a two-wheeler? ›

The average motorcycle cost ranges from $4,000 – $20,000. However, you can find some high-end options worth $60,000 or just pay a few hundred dollars for used ones.

What is comprehensive insurance? ›

Comprehensive car insurance is a coverage that helps pay to replace or repair your vehicle if it's stolen or damaged in an incident that's not a collision. Comprehensive, sometimes called "other than collision" coverage, typically covers damage from fire, vandalism or falling objects (like a tree or hail).

What are the 2 categories of motor vehicle insurance? ›

The two main types of car insurance policies are liability-only and full coverage. While liability-only policies just have bodily injury and property damage liability insurance, full coverage includes comprehensive and collision insurance in addition to state-minimum coverage.

What is the difference between first party and third party two wheeler insurance? ›

Ans: In 1st party insurance, the insured bike is covered against many unforeseen accidents like- theft, accident, fire, etc. That's why it is also known as the own damage (OD) cover. On the other hand, 3rd party insurance policy takes care of the damages/losses/injuries/death of the third-party property and person.

Is ATV insurance same as motorcycle insurance? ›

ATV insurance is very similar to motorcycle insurance. All-terrain vehicles are three, four or six-wheeled buggies used off-road. 4×4 insurance has the same basic coverages included in the motorcycle insurance policy, tweaked for the needs of off-road enthusiasts.

Which of the following is not covered under a long term care policy? ›

Some of the more common exclusions in policies covering long term care services are: Mental illness, however, the policy may NOT exclude or limit benefits for Alzheimer's Disease, senile dementia, or demonstrable organic brain disease. Intentionally self-inflicted injuries. Alcoholism and drug addiction.

What happens when a term rider expires? ›

Your family won't receive a death benefit after your term life insurance policy expires, so you'll need a replacement policy to continue coverage. You can convert your policy into permanent insurance or buy a new term policy to replace coverage.

What is the benefit of term rider? ›

Riders are optional, extra terms that go into effect along with your basic policy, often at an additional cost. Simply put, a rider provides additional coverage and added protection against risks. Insurance riders are effective add-ons you can choose in addition to your life insurance policy at economical rates.

What is the difference between fixed costs in the short run and the long run? ›

Fixed costs do not vary with the amount of output being produced. We cannot adjust fixed costs in the short run, but in the long run, all fixed costs become variable.

What is the relationship between short term and long term average cost curves? ›

Short-run and long-run average total cost curves differ because, in the short run, fixed assets are held fixed, whereas, in the long run, all costs are variable. It implies that each point on the long-run average total cost curve would minimize the average total cost for reach level of output.

What is the difference between short term and long term economy? ›

Short-term economic growth is realized when an economy's aggregate demand is increased. Increases in AD lead to high levels of real GDP. Long-term growth, on the other hand, is realized when an economy's potential of production is increased.

What are two examples of long term insurance? ›

Some examples of long-term insurance products are income protection to protect you if you can't work anymore, disability cover to protect you if you become disabled, and critical illness cover to protect you if you get a serious condition.

What are the advantages of long term insurance? ›

So, make sure that you choose a time period that works as per your financial condition, age, and future financial goals. Longer duration term insurance plans are usually better than the shorter duration term insurance plans, as the tenure lasts longer, which means more savings.

What are the four types of term insurance? ›

What are the Different Types of Term Insurance Plans?
  • Level Term Plans. The basic and the simple form of term life insurance is termed as a level term plan. ...
  • Increasing Term Insurance. ...
  • Decreasing Term Insurance. ...
  • Return of Premium Term Insurance. ...
  • Convertible Term Plans.

What are the advantages of short term? ›

These loans are considered less risky compared to long term loans because of a shorter maturity date. The borrower's ability to repay a loan is less likely to change significantly over a short frame of time. Thus, the time it takes for a lender underwriting to process the loan is shorter.

Why does a company use both short term and long term? ›

Short term and long capital are needed for organizations to survive in today's economy. Organization's now more that ever need these different sources to diversify, expand or to keep processes more efficient thus keeping them at the head of the pack.

What are the characteristics of short term insurance? ›

A short term insurance policy provides cover against loss, damage, liabilities and more. You pay a premium (either monthly or annually) to an insurance company who in return provides the cover to compensate you when you suffer a loss on insured items.

What types of risk is covered by short-term insurance? ›

Short-term insurance provides cover against risks such as theft, break-ins, property damage, disability, professional liability, and more. Going through life without cover leaves you open to large financial risks.

Is short-term insurance paid in advance? ›

Short-term insurance products

You can take out insurance to cover your belongings such as a house, a car or a cell phone or for a health or disability event. It can also cover you for legal liability to others – for example, accidentally injuring someone with your car. This is paid upfront for the month ahead.

How can I reduce my insurance premiums? ›

7 easy ways to help lower your car insurance premiums
  1. Choose car safety and security features. ...
  2. Set higher deductibles on your auto insurance. ...
  3. Take a defensive driving course. ...
  4. Park your car in a garage. ...
  5. Compare auto insurance quotes. ...
  6. Bundle insurance policies. ...
  7. Get good grades.

Can you cash out a short-term life insurance policy? ›

Term life insurance can't be cashed out because these policies do not accumulate cash value during the limited time they provide coverage. However, some term policies have an option that enables the policyholder to convert them into a form of permanent life insurance.

How much time is considered short-term? ›

What is short-term planning? Short-term planning is usually considered to take 12 months or less.

Can you cash out short-term life insurance? ›

Typically you can not cash out a term life insurance policy because it doesn't have any cash value like whole insurance or universal life insurance. A term life insurance policy is designed to provide coverage for a specific period of time, usually 20 or 30 years.

Does short term insurance count for taxes? ›

You can usually deduct the premiums for short-term health insurance as a medical expense. Short-term health insurance premiums are paid out-of-pocket using pre-tax dollars, so if you take the itemized deduction and your total annual medical expenses are greater than 7.5% of your AGI, you can claim the deduction.

What are short term premiums? ›

What Does Short Rate Premium Mean? Short rate premium is the money refunded to the policyholder when they cancel a policy prior to its expiration date. The amount is usually calculated based on a short rate table that combines the inception date, the date of cancellation, and the premium paid.

Is decreasing term insurance worth it? ›

Decreasing term insurance is a good solution if you want to cover any big financial commitments. Because of its reducing benefit, it's unlikely to cover more than loan debt, but it can be useful as you don't have to manually reduce your cover over time to match your changing circumstances.

Which is better long term or short-term loan? ›

Since lenders charge interest payments monthly, a longer loan term inherently means more interest payments. Taking on a personal loan with a shorter term will help you save on interest charges (at the trade-off of having larger monthly payments, of course).

Which is better short-term or long term financing? ›

Essentially, the type of capital companies select will depend on the needs of their business. Long-term capital is better-suited for external and internal strategic investments as well as financial risk management, in contrast to short-term capital, which is best used for every-day, operational needs.

Why is long term better than short-term? ›

Long-term investors may enjoy less risk due to the fact they have more time for their portfolios to make up for potential losses. Meanwhile, short-term investors may want to avoid volatile investments, such as some riskier stocks or stock mutual funds.

What is the advantage of using a long term rather than a shorter term loan? ›

And if you pay off your mortgage balance within a shorter term, you may pay less in interest overall than with a longer-term mortgage. A longer-term loan has lower monthly payments, which may be a good option if you're on a tight budget or would prefer to direct your monthly cash flow toward other expenses.

What are the disadvantages of long term loans? ›

What are the disadvantages of a Long-term Loan?
  • You'll have to make monthly payments for an extended period of time. ...
  • The interest rates on long-term loans are typically higher than those on short-term loans. ...
  • You may be required to pay set-up fees and closing costs. ...
  • You may be required to provide collateral.

What is the disadvantage of short term loan? ›

The main disadvantage of short term loans is that they provide only smaller loan amounts. As the loans are returned or paid off sooner, they usually involve small amounts, so that the borrower won't be burdened with large monthly payments.

What are the examples of short term and long term funds? ›

Long term financing options are issuing equity, debentures, bonds, venture funding, etc. Short term Finance options are bank overdraft, short term loans, line of credit, etc.

What are the pros and cons of using short term financing to finance a long term project? ›

There are some key decision criteria to examine when considering new financing options.
  • Pros and cons of short-term financing.
  • Pro: Relaxed eligibility. ...
  • Con: Higher interest rates. ...
  • Pro: Get approval in just hours or days. ...
  • Con: The high-cycle risk. ...
  • Pro: Quick payment plans no longer than 18 months. ...
  • Con: Could be habit-forming.
Jul 28, 2016

What are the benefits of a long term bond over a short term bond? ›

Longer-term bonds provide two key benefits: (i) diversification from equities and (ii) stable returns. Given the limited equity exposure in this type of portfolio, these investors do not need the diversification benefit offered by longer bonds.

Which is more riskier short or long-term? ›

Short-term investments, on average, carry lower risk than long-term investments, which provide our money longer to grow and live through market downturns.

Is short-term or long-term more risky? ›

The biggest pro of long-term investing is that there is a lot less risk with than with short-term investments.

Why is short-term better? ›

Advantages and Disadvantages of Short-Term Investments

Short-term investments take on lower risk, making them stable options. Short-term investments help diversify income types, in case of market volatility.

What are three examples of long term insurance? ›

Long-term insurance policies include policies like funeral cover, life insurance, disability cover and income protection. These policies are taken out for a much longer period, usually at least five years but often for as long as 20 or 30 years, or more.


(Insurance Guru)
2. Temporary Motorcycle Insurance - Get Your Policy and Save!
(Motorcycle Ride Coverage)
3. Monsoon Safety Checklist for Two Wheelers - Bike Insurance Basics By Reliance General Insurance
(Reliance General Insurance Company Limited)
4. Comprehensive Guide to Bike Insurance Types: Everything You Need to Know
(Akarsh Sanjay)
5. Two Wheeler Long Term Insurance
(Precious Insurance)
6. Check this ⚠️ Before You Buy Car/ Bike Insurance | Motor Vehicle Insurance
(Pushkar Raj Thakur: Business Coach)
Top Articles
Latest Posts
Article information

Author: Fredrick Kertzmann

Last Updated: 03/06/2023

Views: 6476

Rating: 4.6 / 5 (66 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Fredrick Kertzmann

Birthday: 2000-04-29

Address: Apt. 203 613 Huels Gateway, Ralphtown, LA 40204

Phone: +2135150832870

Job: Regional Design Producer

Hobby: Nordic skating, Lacemaking, Mountain biking, Rowing, Gardening, Water sports, role-playing games

Introduction: My name is Fredrick Kertzmann, I am a gleaming, encouraging, inexpensive, thankful, tender, quaint, precious person who loves writing and wants to share my knowledge and understanding with you.