Term Health CoverageShort Term Health Insurance Coverage
is a variation on individual and family health insurance that can
coverage for individuals or families. Most policies offer coverage
for one to six months. This type of plan is ideal for people who
are between jobs or waiting for a new health plan to take effect.
health insurance typically provides the same coverage as conventional “permanent” major health insurance
such as hospitalization, emergency room services and doctors’ services
in the hospital. It does not cover normal pregnancy or childbirth,
wellness care for children, sports injuries, or care received
outside of the United States. It does not cover dental care or
vision care (unless the care is related to an accident or illness).
Short term health insurance policies are underwritten, which
means they do not cover any pre-existing conditions.
A person must be more than 30 days old and less than 64 years
and 11 months old in order to qualify. Some type of prescription
coverage is usually available with short term insurance policies.
As with other expenses you will need to meet your deductible
and coinsurance requirements.
Benefit periods for short term insurance are for a maximum of
six months and terminates at the end of the period that you apply
for. If you need
major medical insurance at the end of the coverage period, you
can reapply for another coverage period. You application is subject
to the eligibility and underwritten requirements. Any condition
that occurred as an expense during the last coverage period will
be treated as a pre-existing condition and excluded under the
next coverage period.
Several deductible and coinsurance options are available, with
the premium cost varying depending on the features you select.
One of the best features of this type of insurance is coverage
begins immediately. Some companies offer coverage within one
day of the application. You may also designate a specific date
as much as 30 days into the future.
Many people who lose their jobs find that short term health
insurance is much more affordable than COBRA. When choosing short
term health insurance over COBRA, be careful not to allow a gap
of more than 63 days when you have no coverage. You may affect
your right to obtain permanent individual coverage without evidence
If you know
the exact number of days that you need to be covered, you can
by number of days. If you don’t know how
long you will need short term health coverage, you pay for an
initial period of 35 days and then pay for additional periods
as long as you want coverage to continue up to the maximum coverage
period for the policy you select. It is important that you check
your state’s regulations regarding this type of insurance
because each state approves the characteristics of the policies
that can be offered to their residents.
Payment options can be tailored to your individual needs. If
you are not sure how long you will need the coverage, you can
make monthly payments to continue the coverage as long as you
need (up to 365 days). To do this you make an initial payment
for 35 days and subsequent monthly payments for 30 days. With
most companies, you can save up to 20% of the cost if you pay
for a single premium rather than monthly billing.
If you are between jobs, a recent college graduate or waiting
for a new health plan to take effect, short term insurance
can provide you and your family without the security you need.
Electing to be without health insurance is a dangerous choice
that can take a serious physical and financial toll on you
and your family. Even young, healthy adults should bear in
mind that a single emergency room visit can cost hundreds,
even thousands of dollars and intensive care can cost thousands
per day. And that does not include the cost of prescription
drugs. Medical bills are one of the leading reasons why people
file for bankruptcy. More importantly, people without health
insurance are tend to wait longer to seek care so that diseases
are more advanced when they finally see a doctor. This increases
the mortality rate of uninsured people.
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