Whether it's a result of changing jobs, being laid off, or simply changing Individual Health Insurance carriers the transition can be stressful.
Often times there is potential for a gap in coverage while going through the transition.
One way to easily and cheaply fill the gap between coverage periods is with a Short Term Health Insurance policy.
The following three common scenarios are examples of when Short Term Health Insurance can be very beneficial.
Example I: When starting a new job that provides Health Insurance benefits there is most often a wait period that needs to be satisfied before coverage begins.
In California, the wait period can be anywhere from a few days up to six months for businesses that employ less than 50 full-time workers.
If you don't have other Health Insurance coverage you will go uninsured until completing the wait period.
In this situation a Short Term Health Insurance policy purchased for the exact number of days in the wait period will provide coverage until group sponsored benefits begins.
Example II: For a person who loses his or her Employer Sponsored Health coverage COBRA continuation must be offered.
COBRA allows a person to continue his or her current benefits at either 102% or 110% of the premium.
Depending upon the person's age and current Insurance plan the premium can be very expensive and not a viable option for someone who has little or no money coming in.
A monthly Short Term Health Insurance policy can provide coverage for up to 6 months while saving significant premium over COBRA coverage thereby giving additional time to sort out other more permanent options.
Example III: When applying for Individual Health Insurance there is an underwriting process that all applicants must go through.
Depending upon the person's health history, medical records may be required.
When medical records are requested it can add significant time onto the underwriting process.
Even when applying early for Individual Health coverage, if records are requested, expect to wait an additional few days to a few weeks or more.
A 30 day Short Term plan is ideal in this situation to maintain coverage while providing piece of mind as underwriting is completed.
Short Term Individual Health Insurance plans are designed to be flexible and have many advantages such as choice of deductible, length of coverage, and accelerated medical underwriting.
Most insurance carriers offer a wide range of plan deductibles, anywhere from $250 to $4,000 or more with premiums starting at less than a dollar per day.
Coverage can be purchased for a select number of days or on a month to month basis, usually with a 6 month maximum period of coverage.
Medical underwriting is based upon a set of yes or no health questions and generally takes about 24 hours with coverage starting as early as the day after applying.
When faced with a possible gap in coverage a Short Term Individual Health Insurance plan can keep you covered easily and cheaply.
The flexibility between choice of plan deductible, period of coverage, and accelerated underwriting make this type of plan an ideal solution to maintain coverage through what could otherwise be a risky time.
Call your local Independent Insurance Broker and ask about the plan options available in your area.
A qualified broker will be able to answer all of your questions and help you select and apply for the plan that's right for you.