Insurance is a matter of choice but with so many insurance corporations providing the best insurance plans, it is difficult to find out which insurance corporation is the best. To understand the technicalities of insurance, one needs to have a fair idea of the types of insurance plans available in the market. One such type of insurance is Short Term Health Insurance. In this article, we shall learn its need and coverage limitations.
Understanding Short Term Health Insurance:
As the name suggests, a short term health insurance, also known as temporary health insurance, is a health insurance policy that provides insurance for a short period of time. The time period may be as short as a month and can also go up to 6 – 12 months. As far as working is concerned, short term health insurance works in a similar way as a long term health insurance. The only difference between the two is the coverage each policy provides. If you buy one short term health policy, you shall receive a health insurance card that will possess limits and deductible on the services of the policy.
The Need of Short Term Health Insurance
Short term health insurance proves to be very suitable to a section of the society such as students, temporary workers, etc. These people find a short term plan more economical and suitable since their stay in foreign land is not long. Buying a long term insurance policy can be very expensive considering the duration of their stay. These policies are also suitable for people who sport good health and do not wish to spend more on long term insurance policies. The short term insurance policy in essence provides one with an insurance against accidents and illnesses for a limited period of time, say not more than a year.
Coverage Limitations of Short Term Health Insurance
The difference between a short term and a long term health insurance plan is the coverage since a short term health plan does not cover pre-existing conditions and preventative care. A pre existing condition is a medical problem that one suffers from prior to getting into the insurance. The short term health insurance polices are specifically designed to provide protection against major health problems.
Another point to be taken care of is that if one opts for a short term health insurance policy, one becomes ineligible to the guaranteed health insurance coverage that one is provided with irrespective of the status of one’s health. Also visitors to USA need to have visitors health insurance done mandatory.
Despite its limitations, temporary health insurance is a boon for people who cannot afford to buy long term health insurance plans. Since major illnesses are covered under a short term health insurance plans, students and workers prefer buying it rather than any other long term plan.