Insurance for Short-Term or Temporary Situations

You may need temporary or short term Health Insurance in many different situations: just out of school, between jobs, not yet eligible for new employer’s coverage, temporary employee, early retirement, and after COBRA coverage ends.

Is Short-Term Health Insurance expensive?

Short term health insurance for healthy people is fairly low in cost. You also have a wide range of options from which to choose, from very basic coverage to almost total comprehensive. Some people only buy insurance that will help when medical problems are catastrophic in nature. Most people go with temporary insurance that covers most options and lasts from three to 12 months.

How does having Short-Term Insurance affect me?

You will have freedom of choice for the doctors and hospitals you use and may have a fairly low Deductible. The insurance works like most other health insurance policies, covering hospital care, emergencies, surgery, bloodwork, x-rays and more. But if you have a pre-existing condition, you may be denied coverage. This is how the insurance companies keep the cost of these short term policies so low.

Disadvantages of Temporary Health Insurance

 There are several disadvantages to temporary insurance. You may need pre-certification for many medical services. You need to make sure the deductible is payable only once and is not required for each illness or accident. Also, your use of the insurance for an accident or illness may be cited as a pre-existing condition when applying for another temporary policy, resulting in denial of more insurance. As life's circumstances change, so do insurance needs and options. Temporary health insurance is designed to fill the gap when a break in normal insurance coverage occurs. Transitioning from college to full-time employment, changing jobs, leaving home for the first time, taking an extended work sabbatical, or retiring early are all transitions in life that affect insurance coverage. Offered by many major Health Insurance Carriers throughout the United States, temporary health insurance can provide you with 30 to 365 days of medical coverage when you need it.

Temporary Health Insurance Eligibility

Also sold as "Short-Term" insurance, temporary health insurance is aimed at healthy individuals with no pre-existing conditions or verifiable continuation of coverage. It is purchased directly from the company that sells it, either through the company itself or through one of its authorized agents. Most temporary health insurance plans are indemnity or Fee-for-service plans. You pay on a month-by-month basis for as long as you need the coverage or until your eligibility runs out. Some carriers offer the option of a single payment for three, six, or twelve months of coverage. Length of policy terms vary depending upon the insurance carrier; some insurers limit their short-term policies to no more than 6 months. It typically takes only 24 hours to a week to get a temporary health insurance policy much less time than the underwriting process associated with a Health Care Plan application.

Benefits of Temporary Health Insurance

Temporary health insurance policies offer the advantages of traditional indemnity plans. Mainly, you are able to choose your provider and hospital, and no referrals are necessary for you to visit a specialist. While plan features and benefits vary by carrier and Individual needs (every insurance policy contains provisions required by state and federal laws), you can expect to pay a monthly Premium, Coinsurance (or Copay), a deductible, and fees above what the insurer determines as reasonable and customary. Most plans do not include preventative and routine healthcare, or dental and vision benefits. Due to the short term nature most have maximum lifetime benefit payouts below $2 million. The monthly cost of temporary health insurance can be quite low when compared to standard health insurance. This affordability is due to factors such as high deductibles and intense competition within the short-term health insurance market. However, the biggest factor affecting affordability is the insurers' ability to set strict pre-existing condition and treatment exclusions.

It is recommended that you seek a Licensed Certified Field Broker/Agent ( Click Here) who can advise you of your options.