Learning About Short-Term Health Insurance

Short-term health insurance is the ticket for people in transition. If you are healthy and unemployed, employed part-time, going to school, graduating from college, leaving home for the first time, or even retiring early, you might consider carrying short-term health insurance coverage.

Health care can be very expensive but so can not having any insurance. Individual doctor visits can run from $100 -$300. A day in the hospital can cost $1000 or more, and operations may skyrocket into tens of thousands of dollars. Short term insurance protects you against these unpredictable expenses due to serious illness, accident or injury. These expenses can wipe out your savings or even bankrupt you. Your policy gives you many of the same benefits of regular insurance, namely protection. Short term insurance typically runs from 30 to 185 days. You pay a premium just like regular health insurance.

How It Works
Sometimes called gap insurance, short term insurance is intended to provide a bridge between coverages. It is not a substitute for regular insurance. Usually it won’t pay for routine office visits or dental care, and covers just the basics. The good news is premiums can be found online for less than $100 a month and as low as $25. The cost is low because usually the deductible is high, plus the policy holder may have to pay from 20-50% of health care costs. Typically people want this coverage to protect themselves against catastrophic events while they’re in between jobs. Because it’s only temporary, they may be willing to run the risk of less comprehensive insurance.

Typical Coverage With Short Term Health Insurance:

Emergency health care

Ambulance

Intensive care

Lab work/X Rays

Prescriptions

With any health plan terms may differ, so check your policy carefully. There is a basic premium, which is how much you pay, usually monthly, to buy insurance coverage. In addition, there are often other payments you must make, which will vary by plan. In considering any plan, you should try to figure out its total cost to you and your family, especially if someone in the family has a chronic or serious health condition. Short term insurance requests may be denied if there is evidence of a pre-existing condition.