Short term health insurance or simply short term, limited-term insurance refers to short term health plans with an exceptionally limited period, usually for a month or less. These plans were originally designed for those who need temporary health coverage to bridge the gaps between long-term plans. For instance, they could be needed to provide coverage for a child who is coming back to school or for someone who is returning from a trip and needs a temporary coverage. These policies have been around since the mid-1990s and are relatively inexpensive compared to long-term policies.
There are several reasons why short term health plans might be desirable in some situations. For instance, people living in states that do not require a health care insurance plan can obtain short term insurance as a stand-alone insurance solution. Additionally, people in certain industries, such as the hospitality industry, may find that the cost of long term insurance makes it difficult to pay for their personal healthcare needs. For them, this type of insurance provides an affordable solution and is often much less expensive than getting a long term health policy through their employer.
Short term health plans are also more affordable than some other types of health insurance policies, including some long-term options. The short term health plans are also less expensive than long term health plans due to the fact that the provider typically will cover the cost of a consultation, medication and some procedures until the individual reaches his or her replacement age, which is generally the age of 65.
When looking for short term health insurance, one should consider the amount of benefits he or she needs, the deductible that needs to be paid and the level of coverage that is required by his or her state. Some states may have higher levels of coverage, which will make the policy more costly, while others may have lower requirements.
One of the most common reasons for obtaining short term insurance is to provide coverage in the event of a major medical emergency. However, even if short term insurance is purchased to cover such emergencies, many times the person receiving the insurance actually needs regular coverage for all major healthcare needs because he or she has never had a major medical problem before.
People who purchase short term health insurance usually do so because they have a major health emergency ahead of them. For example, they might need to visit their doctor right away for a cold or are injured and would like to get back on track to recovery as soon as possible.