Short term health insurance policy is suitable for people currently waiting for other plan approval or are in the middle of changing jobs. It is also a good choice for students who have just passed out and for those who don’t have any other medical health coverage.
Short term health insurance policy provides the coverage for 1-12 months, and for the longer periods, there are other individual and family health insurance policies available. Short term policies are usually non-renewable, and hence must be considered only by people in the middle of policy changes, and must not be used as a replacement for the general comprehensive insurance policy.
Coverage Of Short Term Health Insurance Policy
Short term health insurance policy is designed to cover the sudden accident or illness, and does not cover the pre-existing medical condition. These policies also do not cover the preventive medical care benefits like physical examination, vision and dental care, and immunizations.
Services that are commonly covered by the short term health insurance policy are prescription and emergency medicine, lab and x-ray tests, home/hospital medical care, and ambulance charges. Most of the policies extend the coverage to dependents and spouses as well.
Short term health insurance policy is quite affordable, and standard policy usually has monthly premium less than $100. But the cost could vary as per the deductible, which is the amount paid upfront by the policy holder each year for the medical expenses, before insurance starts paying up. The deductible can be as low as $250 and can be as high as $2,500.
A good short term health insurance policy offers a reasonable ceiling on the cost incurred by the policy holder.
Advantages Of Short Term Health Insurance Policy
This type of coverage costs less than the traditional medical coverage. In case of injury, hospitalization or accident, this policy covers for the treatment, reducing the policy holder’s expenses to minimum. These plans can be used with any hospital or doctor within the country and not just with a selected number of physicians.
Some of the short term health insurance plans also cover certain transplants, mammograms, PAP smears, and home health care such as services from a certified nurse or health aide.
It is however important to note that these plans do not cover pregnancy and child birth. If you get some serious condition after the coverage becomes effective, after the expiry period, you may not qualify for other plans. Most of the short term health insurance policy providers do not cover the people over 65 years of age. It is also not advisable to have double coverage, as it may not give you good value for money.