Short-term health insurance provides temporary coverage, typically lasting from a few months to a year and useful for people who can’t afford comprehensive coverage. Here is what short-term health insurance provides.
Understanding short-term health insurance
Short-term health insurance, also referred to as temporary or term medical insurance, is intended for those who need immediate coverage without the long-term commitment associated with standard health insurance policies. Such coverage helps people between jobs, recent graduates awaiting employer-sponsored coverage, or anyone who missed the open enrollment period for comprehensive health plans.
Key features of short-term health insurance:
Limited coverage period: Typically ranges from a few months to a year.
Lower premiums: Compared to long-term plans, short-term plans often have lower premiums.
Limited benefits: May not cover pre-existing conditions or certain types of treatments.
Higher deductibles and co-pays: Short-term plans often have higher out-of-pocket costs.
Duration of coverage.
– Short-term health insurance: Typically covers less than 12 months, meant for temporary coverage, such as during gaps between jobs.
– Long-term: Provides coverage for a year or more, often designed for sustained health care needs.
Cost:
– Short-term: Lower monthly premiums but potentially higher out-of-pocket costs when medical care is needed.
– Long-term: Higher premiums but broader coverage and lower out-of-pocket costs in most cases.
Eligibility:
– Short-term: Requires basic health information and typically doesn’t involve detailed screening.
– Long-term: May require detailed medical exams and health histories, which could impact eligibility or premiums.
Benefits:
– Short-term: Covers essential services but may exclude pre-existing conditions and offers limited benefits.
– Long-term: Comprehensive benefits, including preventive care, prescriptions, mental health services, and maternity care.
Provider network:
– Short-term: May have a more restricted provider network.
– Long-term: Usually offers a broad network of providers.
Renewal:
– Short-term: Non-renewable or only renewable for a limited time.
– Long-term: Renewable as long as premiums are paid on time.
Short-term insurance is typically a temporary solution, while long-term plans are more permanent and provide more extensive protection.
Dhirendra Mahyavanshi, Co-Founder and chief executive officer, of Turtlemint (an insure-tech company) explains when you should buy short-term health insurance?
Consider buying short-term health insurance in the following situations:
Gap in coverage: If you’re between jobs or waiting for a new employer-sponsored plan to start.
Temporary need: If you need coverage for a specific event or situation, such as a trip abroad or a short-term project.
Cost-effective option: If you’re on a tight budget and only need temporary coverage.
First Published: Sep 13, 2024 | 4:24 PM IST
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Kanishk Singh has always had a keen interest in fast-paced cars. For the past three years, he has been writing about automobiles, but his fascination with cars dates back even further. He thoroughly enjoys learning about their features and expressing his thoughts through his writing. Kanishk also has a profound interest in the stock market, shares, and business strategies. He possesses a wealth of knowledge on these subjects and consistently writes articles on them. Currently, he is working as a writer for Lattestnews24, specifically focusing on the Automobile, Finance, and Business categories. His well-crafted words are highly appreciated by the readers, as they find them both informative and creative.