There are two priorities that everyone has when shopping for insurance: great price and great coverage. The challenge of finding great insurance at at the right price is a hard task to fulfill for individuals as long term insurance may not be what is needed. Can anyone find short term insurance that doesn’t cost a fortune?
Absolutely. It’s called, quite obviously, short term insurance. As you may expect from the name, short-term health insurance provide health insurance coverage for unique situations in which people need coverage for a flexible time period or a brief time period. People between jobs, people transitioning from school to a job, or those who are planning to get married in the near future, find this type of health insurance arrangement very beneficial. Short-term insurance may also be referred to as temporary insurance, and usually provides coverage for anywhere from a few weeks to a few months. A few insurance plans even provide coverage up to thirty-six months, due to the fact that unemployment concerns have become more acute.
Advantages
– They out of pocket cost for short term insurance is generally less than a typical insurance plan. This is great news for those who are in between jobs and need to save as much money as possible.
– Applying for short-term insurance is much easier and takes less time and hassle than standard insurance.
– A short term plan can work well for those unsure of how long they will need the coverage. The plan can be easily extended if needed.
Disadvantages
– Short term insurance will not cover routine well care visits, physical exams, immunizations, dental cleaning or procedures, or vision coverage. In this respect, short-term insurance is more of a form of protection against serious injury than it is a full-fledged insurance policy.
– One of the most significant disadvantages under temporary medical insurance is that it does not cover any preexisting medical conditions. Preexisting medical conditions refers to any illness or condition that existed anywhere from three to five years before the insurance coverage begins.
Alternatives to Short-Term Insurance
– COBRA. While short-term insurance has some great advantages, it does not address all the concerns of an individual who may need short-term coverage, especially if he or she has a preexisting condition. There are options. If you are ending a job at which you had insurance coverage, you may be able to extend this coverage under a program called COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act. While COBRA coverage will extend an existing insurance coverage, it does so at a rather high cost.
– HDHP. Higher Deductible Health Plans is an option that has a high deductible (as mentioned in the name) and zero coverage for out of pocket expenses. Because of this, the cost of an HDHP is usually much lower than a typical health insurance plan. HDHPs do not allow coverage by any other health insurance plan.