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Who Should Consider Short-Term Medical Insurance
Short-term medical insurance, also known as term or temporary insurance, isn’t the first thing most people think of when considering healthcare coverage for themselves or their family. We tend to think of major medical insurance or we simply settle for the plans that are offered by our employer without realizing there are other choices.
For some consumers, these short-term plans may be a better option, especially if insurance coverage is driving our life choices such as keeping us in a job we don’t want or living in a city we hate. But we often don’t know that there are options available to us and that we can customize a plan to fit our needs.
As options for coverage through the healthcare marketplace dwindle, and healthcare plans offered by employers skimp on benefits, consumers need to be informed of every option available. It’s an unfortunate fact that many people arrange their lives around their medical insurance instead of finding healthcare coverage that suits their changing circumstances.
Are you one of those who should consider short-term medical insurance? For individuals with uncertain life situations, short-term healthcare coverage can be beneficial. You should definitely evaluate temporary plans any time you need a “bridge” in medical coverage.
Dependents Aging Out of Their Parents’ Plans
Children can remain on their parents’ policies until their 26th birthday even if they’re married, full-time students, not living at home, or no longer financially dependent. After that age, they can transition to the healthcare marketplace, obtain their own policy, or enroll in an employer-sponsored plan.
For dependents who have no insurance through their employer, but will be transitioning to a new job or starting a career, short-term medical insurance would be a good solution. For many 26-year-olds, life circumstances are uncertain, and many important decisions remain undecided.
But healthcare coverage shouldn’t be one of them. Anyone can become ill or injured so going without some form of healthcare coverage is foolish.
Going through a divorce is difficult enough with so many life changes occurring at one time. Where will you live? How will child custody be arranged? Who’s going to be responsible for your dependents’ healthcare?
Short-term medical insurance can help tide you over while the disruptions of a divorce settle down and important matters get finalized. A temporary health plan assures that anyone can still be covered in case of injury or illness.
Further, courts are often concerned about this provision, especially regarding children. Providing coverage, even through a temporary policy, may demonstrate that a parent is taking their responsibilities seriously.
Workers on COBRA Plans
Many workers depend on the Consolidated Omnibus Budget Reconciliation Act (COBRA) when they lose their employer-sponsored coverage whether through loss of a job or some other event such as a divorce. COBRA isn’t insurance, but important legislation surrounding workers’ rights to remain on the company’s health insurance plan.
In short, this law gives workers the right to continue coverage. However, the cost of premiums usually make this an unattractive option. Many workers are shocked to see their premiums skyrocket, usually at a time of life or in a situation in which they can least afford an additional financial burden.
Most employers subsidize employee coverage. But under COBRA, consumers pay the full cost of the premium, which can be much higher than anticipated.
Short-term medical insurance may be a much better option for those considering continuing coverage under COBRA.
Under 65 and in Good Health
For consumers under 65 and in good health, with no preexisting conditions, a temporary plan can be a better option than a major medical plan. This is especially true if going through a life transition or when circumstances are uncertain such as relocating for a job or opting for early retirement.
While short-term coverage doesn’t make sense for everyone in every situation, there are definitely those who should consider the option. For those who don’t have significant health issues and simply need insurance for a short period of time, a short-term plan makes sense.
The ability to customize your coverage can provide great peace of mind when you need time to decide your next step. Short-term coverage is ideal for people in this situation.
Too many people allow questions surrounding healthcare insurance to dictate the important decisions in their lives. Many people remain in bad relationships, stay in dead end jobs, or pursue careers they don’t want because of health insurance.
Make sure you’re informed and consider all your healthcare options. Short-term medical insurance can give you time you need as you get ready to move on to something better.
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