There are some instances where you may need short term health insurance for a brief period of time. For instance:
- You are in between jobs
- A student or recent graduate
- A non-U.S. citizen
- Under temporary employment
- You missed the open enrollment period for health insurance
In these cases, short term health insurance (also called temporary health insurance) could be the answer. Short-term health plans make sense if the following is true:
- There are no pre-existing medical conditions
- There is a definitive period of time in which coverage is needed until another health insurance plan takes effect
What are the advantages of short term health insurance?
- Simple Underwriting Usually takes no more than a couple medical questions.
- Low Cost Premiums for short term health insurance are generally much lower than long-term health insurance plans.
- Credible Coverage Helps to fill in gaps for periods you are between jobs.
Are there disadvantages to short term medical insurance?
- Pre-Existing Conditions Short term health insurance plans generally do not cover pre-existing conditions.
- Limited Duration Can be purchased for just a few days to several months; however, the plan generally cannot be extended beyond a pre-determined maximum coverage date.
Can a short term health insurance plan be continued once the term ends?
Technically, it cannot. Although most insurance companies will let you purchase multiple short-term plans, it is important to note that each term begins a new contract; therefore, it is technically re-written and not renewed. This means that a medical problem that occurred under one short-term plan would become a pre-existing condition under the new plan. That is why short term health insurance plans should be used in temporary health insurance coverage situations.