The More You Know: Short Term Health Insurance Plans

Cheap short term health insurance plans are becoming a more popular alternative to their more expensive long-term counterparts. Obviously, the most appreciated of which is the cost. For the majority of people without active long-term coverage, short term low cost health insurance plans may be the best solution.

Short term health insurance plans were designed specifically for those who need temporary coverage to bridge a gap of going uninsured. Researching most affordable health plans is a smart option to consider if you are a student, in between jobs, retired without Medicare, or simply left without standard health insurance in general. Additionally, carriers allow you to customize your policy and can provide you with short term health insurance quotes in no time.

From another financial standpoint, short-term protection is now considered adequate coverage, eliminating the previous tax penalty of going uninsured.  The penalty was eliminated under the Congressional Tax Reform Act beginning in 2019. Additionally, where there was a 3-month term limit on these types of coverage, this has now been extended to up to 365 days in most states, eliminating the previous term limitation.

In addition to cost-effectiveness, cheap medical insurance provided by term coverage provides benefits that most people need during periods of going uninsured.  These benefits include hospital care, emergency room visits, surgery services, ambulance services, and intensive care. Essentially, they offer the types of coverage that most people may need during temporary periods of going without traditional health/medical insurance.  

Policies typically last from a few months up to a year, with the option to renew for up to 36 months. If coverage is still needed after reaching the end of a policy, you can simply apply and enroll in a new one (check with your state’s laws). Financially speaking, premiums on term insurance are a fraction of the cost in comparison to major medical insurance premiums.

Cheap short term health insurance is a great option for those who can benefit from it, however, it is not intended for everyone. Short term medical plans are intended to be a cheaper option for those who don’t have certain serious health conditions or require complex medical attention. Additionally, these types of protection can be applied for all year round, benefiting those who may have missed the Open Enrollment period deadline as is in the case of Obamacare.