Short Term Health Insurance:

Short-term health insurance provides coverage for a specific period of time. This type of insurance plan is very useful for people who are left without any coverage because of their transition status from one phase to another. An example to cite in this case would be one leaving job.

Short-term health insurance generally gives you the freedom to go to any doctor or specialist you like. In some ways it works like an "indemnity" plan. In Short-term health insurance policy there is no requirement for assigning a Preferred Care Provider (PCP).

Short-term health insurance can be a very useful choice in situations where you change job, graduating from school, unemployed and healthy etc. and as a result are out of health insurance umbrella for a short period.

Normally, short-term health insurance plans lasts for up to 12 months. But with the growing demand for these short term insurance policies there plans in the market that span for 36 months or so.

Short-term health insurance has strict qualifying procedures. There premium rates are low and coverage high but they do not cover pre-existing medical conditions especially pregnancy etc. The definition of “pre-existing conditions” differs from state to state.

One added advantage of short term insurance policy is that it is typically bought in one-month increments, allowing you to drop it at any month. Normally prescriptions are not included in the coverage by short-term health insurance. Short-term health insurance policies are traditionally not renewable and expired after the set period of time.

Be vigilant and understand all the conditions that are attached with your short term policies,. Pay attention to deductibles. Note that short-term policies might not compensate you 100% for your medical bills and you may have to pay a certain percentage by yourself. So analyze your situation, and see which policy in the market can fulfill your needs and budget.