Short term health insurance is suitable for individuals and families who are in the transition process in their lives where they need insurance coverage for the cost of their major medical bills within a short period. Basically they don’t have a long term health plan and they just want a temporary solution.
Most of the short term health care plans available in the market last for one month to a year. These plans are renewable for a maximum period of 36 months. Generally these short period plans do not cover any pre-existing medical condition. There are pros and cons of these plans. They may suit certain people’s needs and requirements but they are not as comprehensive as standard long term plans. Let’s analyze the following:
Advantages of short term health coverage:
o The policy holders can obtain coverage in the duration as short as one day
o The premium is relatively low compared with long term plans
o The plans can be obtained through online application and the coverage can be effective within 24 hours
These particular plans work best for those who study overseas or travel overseas, people who are in the process of changing to new jobs and for those who are looking for insurance to fill up the coverage gap
Disadvantages of short term health coverage:
o Your coverage may be limited by the duration of the policy
o Regular dental care, optical and medical check ups are not included
o There is no guaranteed renewal when the policy expires and it may cause difficulties when you consider long term plan
Although short term medical plan is not a good substitute for a comprehensive health insurance policy, it is ideal for unemployed or retrenched employees and their family members during this current economy situation. You can consider it when you have temporary needs.