Temporary health insurance is a special type of health insurance that provides temporary or short term, but complete healthcare coverage to the policyholder, in order to keep him from paying unpredicted medical bills. Temporary health insurance plans are affordable and perfect for those people, who are temporarily without any health insurance coverage, for some reasons. This type of health insurance is also called as short term health insurance, as it provides health coverage for only a short and limited period of time.
Temporary health insurance is normally valid from 30 days to 180 days. Some insurance plans, however, provide coverage up to 12 months. It can be purchased by paying a single premium. Monthly installments are also accepted.
Short term or temporary health insurance is a good alternative to COBRA.
Temporary health insurance plans are perfect for the healthy people, who are going through a transition. Short term insurance plans are especially designed to help the individuals belong to the below mentioned categories:
- Newly hired individuals, who are waiting for major health benefits from their employers – newly hired employees often have to wait for as long as 90 days prior to their health coverage initiates.
- New college graduates, who no longer can enjoy the benefits of their parents’ health insurance – most of the new college graduates are between the age group of 21 to 23. A temporary health insurance plan would be a comparatively inexpensive option for them. A temporary plan provides them catastrophic health coverage, if needed.
- Individuals, who have recently left a job or are between jobs or on strike or laid off – temporary health insurance is simply inevitable for the persons belong to this group. Such plans also act as a temporary and inexpensive substitute to COBRA.
- Part-time employees, temporary employees and self employed – people, without a permanent job or ready to start their own business, don’t have to worry about themselves as well as their families. Temporary health insurance plans are there to provide them and their family, the health coverage for any sort of sudden medical needs. Such plans are available at a very reasonable cost.
- Early retirees, who are waiting for a Medicare plan to start – early retired persons don’t need to put their health insurance on hold, due to Medicare’s age-related eligibility limitations. They can highly go for a short-term health insurance plan, until Medicare starts giving them coverage.
- US Expatriates – most of the health insurance companies implement a waiting period for the US expatriates. However, no longer they have to worry about their health insurance, as short term or temporary health insurance plans are there to help them by providing coverage.
Major benefits of buying a short term medical insurance plan:
- The cost of such plans is lower than comprehensive and conventional health plans.
- Application process for such plans is usually shorter and easier.
- Such plans are available for as short as one month to 12 months. However, the time range varies from state to state.
- Belonging to a short term health insurance plan lets the policyholder become a member of Consumer Benefits of America or CBA, and a member of CBA gets a number of medical advantages.