What Short Term Health Plans Can Do
Short Term Health Plans

What are short term health plans? A short term health plan covers most of the services that an individual health plan would, but with some notable differences.

What It Won't Cover

Short term health plans are usually fee-for-service plans (also called indemnity plans). However, fee-for-service plans do not include full benefits found on other programs, such as preventative medicine and routine care (check ups and shots) or dental care, or vision care. Therefore, short term health plans are not the ideal choice for someone who has a family and who is expecting a health plan with full benefits.

Another disadvantage is that insurance companies who provide short term health plans usually always deny coverage for pre-existing conditions. So if you are currently suffering from any medical condition, don't count on short term insurance plans to alleviate any pain or financial burden.

Short Term Benefits

Short term health plans do have some benefits, however. Unlike regular individual insurance, short term health plans allow your policy to be put into effect quickly, without a waiting period. This might prove to be necessary in your circumstances. Additionally, short term coverage allows coverage to begin and end at a clearly defined time, which could be used to your financial gain, if you are dealing with contracts or with another insurance company.

Most short term policies can include spreading the benefits from one individual to a spouse and other dependents. So providing major but not comprehensive coverage to your entire family would be no problem. Because of their limitations, short term health plans are affordable and cheaper than most policies. An average quote on a short term policy (depending on the deductible) can be as low as $25.00.

Do you really need short term health insurance? What if you become temporarily uninsured by your employer's group coverage, or have plans to start your own business in the near future? It might be an idea to entertain, going without any health insurance. But unless you plan on never leaving the house, then you will always open yourself up to potential illnesses and emergency situations. Health insurance is a protection more than a pressure.