Often, a consumer will need to obtain a short-term health insurance plan. This is the case for people who are between jobs or waiting to qualify for a work plan to start offering coverage. Other times, an individual will need temporary coverage when he or she is waiting to join a spouse’s plan. Luckily, a consumer has plenty of options and should have an easy time finding a policy that meets their needs to the fullest. Here is a quick guide for a person who wants to understand the basics of short-term health insurance.
Who needs it: As mentioned, many people need temporary coverage to take care of their basic needs. This would include someone waiting for benefits to kick in at their job or someone who is waiting to join a family members plan. Other times, an unemployed person who does not qualify for Cobra will need coverage for a few months. Finally, many college graduates, who do not qualify for their parent’s policy, will look for a short-term plan. Without a doubt, the need is real, and the need is big as there are plenty of people who do not have a typical insurance policy.
When looking for a policy, one will usually have to provide a basic medical history. In some cases, a new customer may have to come in for a physical and answer a health questionnaire. A savvy consumer should apply for the policy in advance. Meaning, a new patient, should, while still carrying coverage at the old company, apply for a temporary policy. This will ensure that the patient enjoys full coverage without having any lapse. When everything checks out, the individual should receive a favorable decision and enjoy coverage on the date desired.
What type of coverage
Now, there is no regular policy when it comes to obtaining short-term coverage. However, most insurance companies will cover everything that a normal company covers. For example, with a temporary plan, one can still go to the emergency room or visit their favorite specialist. In fact, with this policy, a patient can, usually, choose his or her own physician. This is an advantage over regular policies; with a regular policy, a person must visit a doctor in the network of the insurance company. While there are no set rules, one will usually enjoy solid coverage from a temporary policy.
To get an idea of the coverage the person can consult with the health insurance broker. The broker is the person who will provide the complete ides of the policy and in what time it will be completed. This will help in achieving the goals.
What is COBRA Short Term Health Insurance?
Many potential customers fear that a temporary policy will cost them enormous sums of money. This could not be further from the truth as many insurers charge reasonable monthly fees. In fact, many clients will find that a temporary insurance policy will cost less than their previous policy. When temporarily insured, most people will not make any serious claims as they are usually going to avoid the doctor and hospital except in an emergency. However, just like a regular policy, one will pay more when they have a serious illness or other risk factor.
As previously mentioned, with a temporary policy, one will enjoy plenty of flexibility. For starters, a customer, after qualifying for the policy, can choose when their terms begin and end. Not only that, with a temporary policy, a patient can visit any doctor or hospital he or she pleases. This is a relief to people who have, in the past, had a standard policy that offers little flexibility.
- Safety net
When obtaining a policy, most people do not believe that they will use it heavily. However, a temporary policy will offer an individual peace of mind as they will not worry about going bankrupt in the event of a sickness or injury. With a small investment, one will avoid being on the hook for hospital bills that often can cost the patient thousands of dollars. Furthermore, with a temporary policy, one will not experience issues when applying for insurance in the future. Sadly, a consumer that does not carry insurance for a few months may have trouble qualifying for a new policy. Luckily, with a temporary insurance policy, a patient will not scare off a new insurer.
- Save more
To save even more money, one can take a few steps when carrying this policy. Some companies will offer the customer a steep discount if he or she pays for the policy in advance. Now, this may be difficult for some people, but it can result in a 10-20 percent cost reduction To take it further, a consumer should think before making a claim as sometimes it would be financially sound to pay the cost out-of-pocket. In fact, when carrying a high deductible policy, one can lower their bill and absorb some small month to month costs.
- Easier to qualify
When looking at a long-term plan, one will have to take a few steps to sign up for their policy. On the other hand, most temporary policies do not ask much from their new clients. Of course, sometimes, the patient will need to come in answer some questions and have their vitals taken. However, usually, a new customer can simply sign up online or over the phone and wait until they receive notice of coverage. Remember, with a temporary policy, one will not have to spend hours on the phone or office trying to convince the company to accept their application.
The biggest benefit to temporary health insurance is that a patient can choose the length of the policy. Usually, one will have an end date in mind as they want to carry insurance until they qualify for a work plan or secure a new job. Luckily, a consumer who does not have insurance lined up can still qualify for a month to month policy. When carrying a monthly policy, one will not have to pay for insurance once they find a job or permanent policy.
While a short-term policy is no substitute for a comprehensive, long-term, policy, it is a great tool. With temporary coverage, one will have peace of mind and save plenty of money should a catastrophe strike. Without a doubt, a person who faces a loss of health insurance must consider going out and applying for a short-term policy.