When Cheap Health Insurance Short Term Makes Sense

Short term health insurance is exactly as the name implies – it is a type of health coverage you purchase which covers a short predetermined amount of time. A number of reasons exist as to why you need it and rest assured you can find cheap short term health insurance to fit your lifestyle. You will likely be able to choose anywhere from one month to one year, depending on your circumstances and you can expect the policy to cover you on unforeseen injury or illness and you can even choose your own doctor and hospital. However, your cheap health insurance short term coverage usually requires you to meet your deductible and co-insurance first before covering the rest.

Why You Might Need This Type of Plan

One of the most popular reasons for needing cheap short term health insurance is due to a gap in insurance coverage, typically when you switch jobs and you have to wait for the insurance enrollment period in your new job. Sometimes, a new job may have a probationary period before you can sign up for their insurance plans. While COBRA is an option for coverage, it is not budget-friendly so insurance in the short term is best.

Recently graduated college students will find that cheap short term health insurance makes sense, especially if their student insurance expires, leaving them uncovered during the job search. Many employers these days are either cutting down on insurance benefits or dropping them all together. If your employer drops insurance as a benefit, you will need insurance in the short term until you can find another alternative, either a cheap family health insurance plan or something through a membership organization you may belong to.

Typical Coverage

Most cheap short term health insurance plans can be deemed "temporary" and are intended to grant coverage for key medical expenses such as surgery and hospital stays as a result of an injury or illness. General hospital costs are covered such as the room, anesthesia and surgical expenses, special tests and other incidental hospital expenses but you would be subject to meeting your deductibles or coinsurance.

Unlike other policies, a short term plan has an end date, a time when it is terminated, and that is something you decide upon in advance when shopping for cheap short term health insurance. You may stop the policy before it ends but you may not be able to renew it when it expires, but each insurance company has its own policies regarding this. Many times, you can be covered within 24 hours of purchasing the policy, although this does vary. Consider your situation and whether you expect things to change within a reasonable amount of time before choosing a cheap short term health insurance policy.