Short term Health Insurance

As the name denotes, short term health insurance policies are a temporary insurance solution for a shorter period. Generally, most of the short term health insurance policies offer coverage up to 12 months. In few cases however, some policies offer coverage up to 3 years.

These policies are specifically designed for those healthy persons and families who are not intended to get covered for their pre-existing conditions. In fact, short term health insurance can offer a real good low cost safety package incase of any injury or illness developed during its coverage span.

The benefits of these insurance policies can be wide ranging as most of the plans offer 1 million dollar coverage per person. As more and more people are inclined to join this safety net of 16 million people in US, the competition in the sector has become much fierce and resulting in very low premiums.

Its low premiums have been one of the major appeals of short term health insurance policies. But here you have to remember one thing that these low cost plans are not designed to cover any pre-existing conditions or ailments of individual. Because of this limitation it is feasible for these insurance companies to offer such a low cost plan. The definition of pr-existing conditions can be done as the symptoms occur during the three year period prior to the start of the insurance policy.

It is always better to remain honest yourself and mention the pre-existing conditions if there are any otherwise you may land up in awkward position where you will find your all claims are got denied. All short term insurance policies have their own list of limitations and exclusions. It is always advisable to go through this list before choosing any between them.

Targeted Clients
Due to its high coverage limits and low monthly installments, the sales graph of short term health insurance policies has been shooting upwards of late. In health insurance industry short term insurance policies stand as the shortest application. Now days many insurance companies also offer credit card payment plans. Hence, for a certain section of healthy community, it serves as the best option.

Person doing part time jobs or the temporary employees are the most likely persons getting benefit of such policies. As most of the corporate insurance plans do not cover part timers or temporary employee, short term health insurance is the great option for them.

Another promoted clients of these policies come form a specific section where individuals are temporarily out of work. Thus people between jobs are one of the most likely consumers of these policies. Under Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) has permitted the individuals to continue their policies with their previous employer for next three years who are laid off or are between jobs.

Another group of consumers are recent college graduates. Many graduates after finishing their graduating certainly look for jobs which offer health insurance benefits. Short term insurance can fill this void for them until they get succeed to find out such jobs. In fact, short term insurance is a ticket for the people in transition.

So in short if you are healthy, unemployed, or doing part time job, going to school, just finished your graduation, getting early retirement, or leaving the home first time you become the potential consumers for short term health insurance.

Eligibility
In order to get eligible for short term health insurance policies you must comply with some conditions.
1. Your age should be below 65.
2. You shouldn’t be covered by another health insurance policy.
3. You should not have ever been denied health insurance previously.
4. Every short term health insurance policies come up with the set of its own qualifying conditions like certain height and weight. You must comply with that specific chart to become eligible.

Things which are not covered by Short Term Plans
In order to keep the premiums low these short term plans don’t offer all the benefits of regular health insurance plan. As mentioned above they don’t cover treatment of free existing ailment. Moreover these plans don’t include routine and regular medical checkups, dental or optical care, preventive care, or pregnancy expenses.

All short term insurance policies are excluded from Health Insurance Portability and Accountability act of 1996. These companies are need not to guarantee their renew ability.

Although there are many limitations and restrictions short term health insurance policies can assist you in filling the voids in your coverage of health insurance. And that is where its significance lies!