Short Term Health Insurance Author:    Posted under: Health InsuranceHealth Insurance Types


We’re lucky enough if our employers would give us that additional incentive of having medical insurance coverage.  That way, we wouldn’t have to worry about getting ourselves insured just in case any unforeseen illness befalls us.  But what happens if we suddenly find ourselves in-between jobs, and worried about the securities that come along with employment?

That is where short-term health insurance comes in.  It provides you with coverage for a short period of time, for as quickly as six months and is renewable for as long as thirty-six months.  Typically, those who are eligible for this type of policy are the following: those who are in-between jobs, those who are newly hired and waiting for regularization, fresh graduates, those waiting for qualification to a longer-term insurance plan, and those losing dependent status (i.e, from parents’ insurance coverage).  This type of insurance provides coverage for unforeseen accidents or illnesses, rather than providing coverage for preventive health care, dental, and vision needs.  Application for a short-term insurance plan is relatively easy to do, and can be approved the day after you have applied for it.  However, the most important thing to take note is that short-term insurance does not cover pre-existing conditions.  Remember to answer the application questions truthfully and carefully so as not to be denied any treatment relating to any condition, as it may occur.  These policies may also have very specific exclusions so it is important to read the fine print and understand what your policy entails.

This insurance policy works much like an indemnity or “fee-for-service” plan.  You are free to acquire treatment from the hospital of your choice.  However, a pre-certification from your insurance company is required for treatment; else, your claims will not be processed.  The thing about this insurance policy though, is that once you made a claim with the company, that certain illness may be considered as “pre-existing” and you may have difficulty renewing the policy then.

Luckily, short-term insurance comes at a low cost.  This is because the insurance company’s risk is very little due to the timeframe allotted for this coverage.  The likelihood that claims will be made is very low compared to a longer-term plan.  You also get to pay a deductible to the company, and once you have already done so, the company will then pay fifty to about eighty percent of the total claim. Premiums can be paid up-front, or on a monthly basis, to suit your needs.

Sources:
http://www.ehealthinsurance.com/ehi/NewHelpCenter.ds?entry=faqId=HI2;categoryId=HI2-1;entryId=1
http://www.insure.com/articles/healthinsurance/short-term.html

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