As job losses in the United States has risen to new heights, so too has the number of citizens turning to short term insurance. For most Americans, being without health insurance simply isn’t possible, which makes short term insurance a way to affordably retain some level of coverage.
In addition to those people who have recently been laid off or terminated, temporary insurance is useful to those who have found new employers that require them to wait through a probationary period before being eligible for a new plan. In the event that you’ve switched jobs are subjected to a 30-90 period preceding insurance eligibility, short term insurance can protect you and your family in the event of injury or illness.
As you consider short term coverage, be aware that it does have some limitations. Checkups for general wellness and preventative care are not available in short term medical insurance policies. These programs are simply intended to cover unforeseen medical events.
Pre-existing conditions are also not covered. Keep this in mind as you apply for coverage, both so that you know what to expect going in and also so that you can answer the application honestly. Temporary insurance policies typically have a number of requirements and limiting factors, so you’ll want to pay very careful attention to all the accompanying terms and conditions.
Items that can be customized to suit your needs on short term insurance plans are the overall length and the deductible. Short term plans may be purchased for 1-6 months, or could even be extended to 12 months, based on need. Discuss adjusting the length and deductible with your plan representative at the time of purchase.
Often times, people who’ve recently left their jobs don’t consider short term medical coverage because they’re eligible for COBRA coverage. They may be missing an opportunity though, as COBRA has several drawbacks that may outweigh its convenience.
Although a former employee can keep their old insurance plan for as long as’ months after termination, that convenience can prove to be pricey. As much as 100% of the resulting premiums may need to be paid, and there are usually expensive administrative fees added onto the bill. Up to 84% of a family’s average unemployment benefits may be used on COBRA premiums, according to the nonprofit group Families USA.
In that case, short term insurance may be a better option. To see if short term medical insurance is right for you, contact your former or pending insurance representative, or search for additional information online. Discuss your unique situation and needs, and find the temporary insurance solution that is right for you.
Ray Sondeo often writes about short term insurance.
Leave a comment