Short Term Health Insurance

What is short term health insurance? Short term health insurance is a health plan purchased by people who only need the insurance for a relatively short period of time. This short period of time can be anywhere from one month to as many as six months, although some insurance companies may offer short term insurance for periods of up to one year.

If a person already has short term insurance coverage it is easy to renew or extend the length of time should the need for coverage be longer than originally thought. This type of health insurance is usually less expensive than regular health plans as it is only used for a short period of time, and may be renewed each and every time it is needed or before its expiration.

There are many types of people who use short term health insurance. For people adjusting to a new environment or experiencing a change in their lives, the short term health option may be the most practical solution. Some examples of people who would be interested in the short term option would be individuals who will no longer be qualified as dependents on their parent’s health insurance plan. Recent college graduates also tend to acquire temporary health insurance as they apply for employment in their newly qualified field. While in school they may have been covered by their student insurance or retained the ability to be covered under their parent’s insurance plan. However, in the interim between graduation and finding a new job, they frequently need temporary health coverage as the graduate may no longer meet the qualifications for student or parental coverage. Once the new graduate is employed and able to qualify for insurance that the new employer offers, they will no longer need the short term insurance.

Another example would be individuals who transfer from one company to another new company. As the person moves away from their former company, they are likely to lose their current health insurance plan. Once they have transferred to the new company, they may need to reapply for health insurance. During the gap from one company until they are covered with the new company, these transferring employees are likely to buy temporary insurance plans.

Since many of the people using short term health insurance are unemployed, the lower out-of-pocket cost is desirable.

Some drawbacks to using short term health insurance are that this type of insurance does not cover routine visits or preventive care. It should also be noted that this insurance does not cover vision or dental care either. If you have a pre-existing condition or are pregnant, you will not be qualified to receive short term health insurance.

Short term health insurance is insurance that is used for emergencies instead of preventive care.

With that in mind, it is advisable to buy temporary insurance in the form of a short term health plan when experiencing a change in one’s life or career and suddenly find yourself without a health care plan.