Temporary health coverage or “short term health insurance” offers affordable health coverage for a predetermined amount of time, usually 30-365 days. The affordability of short term insurance plans makes them very attractive, such plans can cost as little as $20 a month. Temporary health coverage is not for everyone however, there are several things to consider before deciding on this type of coverage.
Temporary health plans can be a much cheaper option than Cobra if you have lost your job or been laid-off. One thing to consider is whether or not you plan on being back at work within a year. The reason for this is, that although temporary health coverage plans can be renewed, each renewal is on a case by case basis and is not guaranteed. Therefore if a serious medical condition arises during that time you may find yourself to be uninsurable. This should not be a problem however if your new employer offers a group employer based health plan.
If you already have a medical condition that requires treatment temporary health coverage could be inappropriate, due to the limitations placed on preexisting conditions with these plans. If you are generally healthy however. a cheap short term health insurance policy could be a perfectly acceptable measure to fill the gap and provide suitable protection against a major medical catastrophe that could spell ruin for your financial future.
Most temporary health coverage does provide for things like surgery, x-rays and labs, some even offer coverage for rehabilitation service usually with a lifetime maximum of $2 million.
Temporary health coverage is also a perfect fit for a recently graduated college student who has yet to find permanent employment. The low cost is complimented by the ease of access, a temporary health policy can usually be applied for and become effective in as little as one business day. As with any health plan the higher the deductible you can afford, the lower your premium will be, temporary health coverage is no different in this respect.