Is Short Term Health Insurance Right For You?

Many people who have fallen victim of today's sour economy are finding themselves not only without an income, but possibly without health coverage as well. COBRA benefits may help to bridge the gap for some, but what do people do who cannot afford COBRA or who are ineligible because their previous employer did not offer health benefits? Perhaps the answer is short term health insurance. Here's a bit more about it.

Even if you have found other employment that will provide you with health benefits, there is usually a 6 month waiting period before those benefits kick in. What do you do if you get sick or have an accident in the interim?

Short term health insurance provides coverage for 6 months up to a year to help fill the gap between comprehensive benefits packages. It should be emphasized that this type of coverage is absolutely temporary: if you think you will need coverage for a longer amount of time, it will be in your best interest to look into obtaining an individual or family health insurance policy that will be more cost-effective for the long term. Most major health insurers, such as Blue Cross and Blue Shield, offer easy to qualify for short term plans.

Short term policies are not only temporary, but they are also not comprehensive in what they will cover. They are designed to give you protection in the event of an unforeseen illness or accident. Short term health insurance will not cover pre-existing conditions for which you are already receiving treatment in the last 2 to 5 years such as diabetes or COPD. It will not cover doctor visits, immunizations, vision and dental, or most types of preventive care. Those with chronic conditions who simply cannot afford to pay for the cost of their own care should look into obtaining coverage through HIPPA instead. Those who choose to have short term policies forfeit eligibility for HIPPA.

Since its coverage is so limited, the process for applying for short term health insurance is relatively simple and in many cases is done completely online. The policy can become effective in as little as 24 hours and its cost is extremely reasonable.

The option of obtaining a short term health policy means that people between jobs do not need to worry about depleting the remainder of their savings accounts if they should experience a sudden illness, accident, or injury. Until your working situation changes or new benefits become effective, a short term policy will give you security and greater peace of mind.