When Should I Get Short Term Health Insurance?


by Adam Torkildson

Are you searching for healthcare coverage? Do you already have one but are about to go into a major transition period in life? Then perhaps what you need is a short term health care coverage.

Ample health care coverage is every American’s dream. In fact, the average American spends $3.4 trillion on medical care annually.

In addition, Americans borrowed a whopping $88 billion in 2018 to pay for their health care. This only goes to show how much people value health care.

Now there are two basic types of coverage: the traditional and the short term health insurance. Continue reading below and see if a short term health insurance is the right one for you.

Short Term Health Insurance

A short term health insurance differs from traditional insurance in many ways. First, it offers limited coverage. Second, it does not come with as many requirements as its traditional counterpart. Now let’s take a look at the best instances for you to consider applying for short term coverage.

Gap Between Policies

As we mentioned earlier, if you are going through a major qualifying life event, then you will likely benefit from a short term health insurance. This type of insurance provides short-term protection for people who do not have existing health care coverage. These are the people who are currently unemployed.

While waiting for a call from an employer, short term insurance can give you the coverage you need. The same thing applies if you are going through a significant transition like a divorce.

These short term options can also help if you recently retired. This will benefit you if you are unable to qualify for Medicare coverage.

Too Expensive Traditional Options

Sometimes, the cost of traditional health care coverage is far too expensive for people to shoulder. Even people who qualify for subsidies still find major health insurance unaffordable.

In 2018, the average premium for traditional medical coverage stood at $448. On the other hand, the average amount for short term health care was only $113.

Companies offering short term coverage can reject people who are less healthy. These are the people who have certain medical conditions.

Through medical underwriting, they can reject these people. In turn, this will lower the cost of their plans.

If you are healthy and don’t have a pre-existing condition, short term insurance can work for you.

No Qualifying Event Just Yet

If you need health care coverage and have yet to go through any qualifying event in your life, a short term plan will suit you best. If you are applying outside open enrollment periods, one of the qualifications is experience in a qualifying life event. These events include childbirth, marriage, and loss of coverage from your employer.

When You Want More Control

You should also consider getting a short term health insurance if you want to have more control. Short term coverage allows you to customize some elements.

For example, you can choose the length of your coverage. You can go from as short as 30 days up to as much as one year. It all depends on the state you are living in.

You can also pick a plan that comes with preventive services. You can also pay for something that features limited benefits. Generally, these benefits cover certain pre-existing conditions. In addition, you can also choose your coinsurance amounts and deductibles.

When You Hate Enrollment Periods

Short term plans are also a great choice if you want to enjoy coverage without the enrollment period. As we mentioned earlier, major healthcare plans come with open enrollment dates. If you miss those dates, you will have to wait for another cycle.

Short term plans, on the other hand, offer an all-year-round enrollment window. This means you can apply for coverage regardless of the time of the year. It will provide you a certain level of protection until you start with your new job.

It will give you coverage in case you don’t qualify for bigger medical insurance coverage.

Furthermore, requesting for a quote will only take you minutes. You can also apply online and find out if you qualify in a matter of minutes. And once you qualify, the coverage applies the following day.

Tips for Finding the Best Short Term Insurance Plan

Now that you know the benefits of short term health insurances, you can start scouting for one. But before signing up for anything, you must first consider these tips:

Access to Your Provider

It is best to go for a plan that gives you access to your preferred provider. It is a fact that short term medical plans offer a limited range when it comes to providers. So practice patience and find one that connects you to your regular doctor.

Find a reputable insurance company that has a solid network of hospitals and doctors.

The Power to Customize

You also need to consider a plan that offers customizable coverage. Find one that gives you the power to choose the coinsurance. Same goes with the deductible, and length of the coverage.  

Keep in mind that a higher deductible equates to a lower premium.

But don’t spend too much on having too many features either. Just stick to a plan that fits your budget but gives you ample coverage.

The Option to Cancel

Lastly, find an insurance provider that offers the options to cancel. There will be times where you will need to cancel your short term insurance. Unfortunately, not every provider offers the option for free.

Some companies will allow you to cancel but not after paying a cancellation fee. Find one that allows cancellations that don’t come with any charges.

Get the Coverage You Need

A short term health insurance gives you the right amount of protection during those crucial gaps in life. Even if you feel that you don’t need one, you may end up on the losing end, considering life’s uncertainties.

If you want to learn more about insurance and protection, feel free to check our other posts and articles. Keep on reading and learning to ensure you are getting the coverage that best suits your situation.




Adam Torkildson
Adam Torkildson

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