Short term health insurance is for people that are in the midst of a change. It is intended for people and families as an inexpensive safety net in case of emergency or sickness that may occur while they are transitioning between jobs or life events and are without basic health insurance.
The amount of coverage you receive depends on the type of short term plan you buy, with some policies providing upwards of $5 million in individual coverage. The name is fairly simple in describing what short term health insurance is. It is not meant as your permanent health insurance.
An ideal example of how to use short term health insurance would be if you were transitioning between jobs. The insurance from your old job was terminated and the insurance from your new job does not go into effect for 60 days after your date of hire. Short term health insurance would be ideal for covering you and your family for those 60 days.
Most short term health insurance plans last on average from 1 to 6 months and can be renewed for as long as a total of 36 months.
The application process for short term health insurance is simple, easy and can usually begin as soon the next business after the application is complete. It works the same as normal insurance and most premiums and monthly payments can be paid online, in person or over the phone with a check or credit card.
The most important thing about short term health insurance is that it does not cover pre-existing conditions. This is normally defined as any health related condition that you have had, or acquired during a 36 month period before the start of your short term health insurance. The specifics for the period of time for pre-existing conditions may vary by state. Your insurance department in your state can inform you of the applying laws. When filling out your application for short term health insurance it is important to answer all questions honestly.