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Short-term insurance, generally speaking, covers your possessions. It refers to car insurance, home insurance, cellphone insurance, travel insurance, and so on. Think of it this way: what are the conditions in your life that can change over the next five years? You may buy a new house, new TV or a new car.
Long-term insurance refers to a range of insurance products that provide you either with an income in the long term – usually when you retire – or a lump sum of money should you become permanently disabled or pass away.