Short Term Health Insurance

5 Reasons why people want short-term medical (STM)

1. They are between jobs or unemployed.

Workers who are between jobs want more options than COBRA, which relatively speaking, tends to be a costly option. Short-term medical insurance is designed to provide coverage between one month and one year. For example, Sara finds out that her new job will offer her medical benefits in 36 days, she can get exactly 36 days of coverage. The length of coverage (which varies by state) typically lasts from 30 days to 1 year.

2. A young adult finished with school, or a student no longer covered under a parent’s insurance plan

Young adults can be covered under their parents plan until age 26. Increasingly, parents are no longer able to cover their children for health care. Because many young adults are healthy, health insurance might seem expensive and pointless. It’s not. An ankle-twist from a pick-up ball game, a broken arm from a skateboard wipe-out, a common cold that morphs into pneumonia—that could turn into thousands of dollars in medical expenses. When these things happen, mom and dad are no longer getting the bill. You are.

3. An early retiree

People retire early or get laid off before they are eligible for Medicare at age 62, need the most cost effective form of health care. According to the AAPRP Public Policy Institute (PPI) :

  • One in three adults lives in families that spend at least 10 percent of their after-tax income on health care.
  • For older adults who do purchase insurance plans on the individual market, the average out-of-pocket costs for premiums and health care are typically two-and-half times higher than the costs paid by people their age who have employer-sponsored coverage.
  • Starting in 2014, there will be controls on how much more health insurance carriers can charge based on age.

Short-term medical may be a very affordable choice for the healthy among this group. There are 5 qualifying questions one must be able answer, “no” in order to qualify.

4. Waiting for other coverage to begin

Someone with a new job may not automatically have coverage from the first day of work.  The health insurance waiting period often temporarily leaves people without insurance. Going without medical insurance even for short periods of time has the possibility of creating large piles of medical related bills such as completely paying for doctor visits, hospital stays, and physical therapy.

5. More affordable

While everybody would like to afford an exotic luxury vehicle, but most cannot afford all of the bells and whistles – not to mention maintenance costs that come with it.  Similarly, those who are best suited for short term medical insurance are those who don’t plan to visit the doctor frequently, but just pay for peace-of-mind. Short term health insurance plans are intended to protect against unforeseen accidents or illnesses, rather than to provide comprehensive coverage, and, as such, typically do not include coverage for preventive care, physicals, and immunizations. Depending on the carrier, dental and vision care can be added as supplements.

For more information on Short Term Medical Health Insurance, go to:  http://www.your-insurance-experts.com/category/health-insurance/short-term-medical-insurance/