Temporary Health CoverageHow Short-Term Health Insurance Can Help You Out

It is estimated that roughly 16 million Americans will purchase temporary health insurance coverage this year. That number includes:

  • Those who have been laid off or are between jobs and have found that the cost of Consolidated Omnibus Budget Reconciliation Act (COBRA) insurance is too much
  • Recent college graduates who are seeking work but have lost their student coverage plan
  • Those who have lost their dependent status under the health coverage plan of their parents
  • Individuals who have recently been discharged from the military

Although most temporary health insurance plans stay in force for up to only 12 months, they do fill a very important gap for those who are without permanent coverage and fear that the high cost of an illness or injury could wipe out their savings – or worse.

It is important to note that most short-term health insurance policies are designed for individuals who are healthy and do not possess any preexisting conditions. These are deemed as conditions or symptoms that the applicant has had during the 36-month time period before the start of insurance coverage.

The premium cost of a temporary policy could be a lot less than most people think, due to competition within the industry.

And because short-term health insurance plans are often bought in one-month increments, they are easy to cancel at the end of the month when the temporary coverage is no longer needed.