Short Term Insurance

Just like you might work a temporary job in-between more long-lasting positions, you might opt for short term coverage insurance in-between long-term plans. After all, at least with short term insurance, while it might be that long-term safety net you’re looking for, you’re at least still covered. And short term insurance does buy you time to find another insurance option and assuage your worried at least temporarily.

Short term insurance plans tend to be flexible, but still help protect you against unexpected health care expenses. Often, the package of benefits that comes with short term insurance is similar to what you would receive from standard health insurance plans in many ways. While you will get coverage for unexpected illnesses and accidents, pre-existing medical conditions and routine doctor visits probably won’t be covered. Though you can likely get coverage as early as the next day if you only answer a few simple questions about your health.

And whole short term insurance is low cost, it also stands as a lower cost alternative to COBRA. If you’re curious, Congress passed the Consolidated Omnibus Budget Reconciliation Act (COBRA) with health benefit provisions in 1986. This law amends the Employee Retirement Income Security Act, the Internal Revenue Code, and the Public Health Service Act to provide continuation of group health coverage that might otherwise be terminated.

Or in other words, health insurance coverage continues for terminated employees and their families (if they have one) for up to another 180 days. It is usually more expensive than health insurance coverage for active employees since former employees now have to pay the total monthly premium themselves, though it is ordinarily less expensive than individual health insurance coverage.

Of course there is nothing stopping you from using COBRA and when that runs out to turn to short term insurance. It all depends on your current circumstances, your health insurance needs, your savings, and what you earn. Most importantly, it has a great deal to do with what you want in health insurance and also what you can get for yourself.

Here’s a few more facts to help you make up your mind about short term insurance.

It might be possible to find a short term insurance policy that will cover you for up to 36 months, but most short term insurance policies will last for 12 months and under. In most cases, short term insurance policies are ideal for healthy people going through a transition phase in their lives. A great example of this is college graduates waiting to receive full benefits at their first real job.

However, remain mindful that most short term insurance policies are underwritten. This means that the insurance agency you go through must be satisfied that you are unlikely to make any claims for the duration of the policy.

So, really, anyone offering short term insurance is looking for someone relatively healthy and who has a strong health history. That’s something key to remember if you are considering short term insurance. However, as always, the final decision rests with you.