Short-term health insurance may be just the thing if you are facing a transition period in your life. If you are unemployed, working a part-time or temporary job, going to school or about to graduate, or considering early retirement, a temporary health plan can provide important protection during times of change.

Who is eligible to purchase short-term health insurance?

If you are under the age of 65 and not covered by any other health insurance, you may be eligible for a short-term plan. However, if you have ever been denied health insurance, have “pre-existing conditions of any concern or fail to meet the weight and height standards, you will probably not be able to qualify for a temporary plan.

Why is short-term health insurance so cheap?

If you are eligible to buy short-term coverage, it is about the cheapest health insurance you will find (get free quotes for short term health insurance ). However, there are three very important reasons why it is so cheap.

First, it is offered to individuals and families who are healthy and do not need coverage for pre-existing conditions, usually defined as any conditions you had during the 3 year period before the start of coverage. Short-term plans are designed to provide protection for an injury or illness that may occur during the short coverage period.

It’s a good idea to be completely honest about your medical history when you answer each question on the application, otherwise you risk having claims for pre-existing conditions denied.
Secondly, short-term health insurance is temporary with many plans limiting coverage to 12 months with no guarantee for renewal.

Third, it has high deductibles, co-insurance and co-payments. It is not unusual to see deductibles of $2,500 and co-pays starting at $250 and up. Your out-of-pocket cost can mount up quickly.

There are now short-term plans which offer coverage for up to 36 months which may be renewable each year. But if you file any claims, the policy might not be renewed or the conditions for which you filed claims might be considered “pre-existing conditions” for a new policy.