Short Term Insurance Tips and Guide
health insurance short term
Short term insurance costs less than traditional major medical insurance plans. However, short term insurance has limitations that need to be considered before purchasing. One major limitation is the fact that short term insurance does not cover pre-existing conditions. Pre-existing condition is defined as any medical condition that was diagnosed or treated prior to the effective date of the short term insurance plan.
For example, if an individual has been taking high blood pressure medicine prior to taking out a short term insurance plan, the high blood pressure would be considered a pre-existing condition. Any new condition would be covered under the new short term insurance plan. This is one reason that short term insurance costs less than traditional health plans.
Short term insurance is a good alternative to more expensive plans in many cases. Healthy students graduating could save money and maintain catastrophic medical coverage with a short term insurance plan during the time they try to find employment with health benefits. People between jobs may find short term insurance more affordable than COBRA benefits as well. Remember that short term insurance generally does not cover pre-existing conditions when considering this option.
Pros and Cons
Short term insurance is based on a fee for service type plan, meaning it is billed on a monthly basis. As long as the bill continues to be paid, the insurance coverage continues and failure to pay will cancel the coverage.
Short term insurance coverage is available in many forms. Numerous companies offer medical and health insurance on a short term basis. Auto and boat coverage is also offered through short term policies. Short term life insurance is common as well.
Short term insurance is particularly helpful during times of transition when other insurance options may not be available. Many insurance policies discontinue coverage of children upon graduation. A short term insurance policy will assure coverage until other options open.
Choosing the right company to purchase a short term insurance policy from can be tough because of the number of businesses offering this service now. Short term insurance is available to help get through those uncertain times without risking a period without coverage.
You may want to check out my other guide on Holiday Insurance and Online Insurance Quotes.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
