Short-term medical insurance policies are the answer to many people’s insurance problems. They help protect customers without major medical policies from the high costs of healthcare. These policies provide a much-needed safety net for the millions of people with coverage gaps. Short term insurance is quite affordable and can prevent you from experiencing a financial disaster in the case of a catastrophic illness or injury.
Here are five excellent reasons for buying a short-term policy.
1. Affordable Choices
Although Obamacare was designed to make insurance more affordable for people with limited incomes, the prices have been rapidly rising, leading many to forego coverage. Insurance companies have also been abandoning the exchange, leaving some areas with only limited choices for coverage. In fact, some companies have a monopoly in certain counties, a situation that is unfair to consumers. A short term policy offers individuals and families affordability and a number of options. Rather than taking what you can get, you can choose a policy that suits your needs and your budget.
2. Losing a Job
If you are covered under an employer’s policy, you will be offered the chance to keep COBRA coverage. Unfortunately, the cost of COBRA tends to be high — much higher than what you paid as an employee of a company. It often costs $500 or more per month. Rather than let your insurance protection lapse as you search for another job, invest in STHI.
3. Good Health
Although good health is not guaranteed for anyone, younger people tend to be healthier and need less coverage. If you cannot currently afford a traditional major medical policy, short-term coverage — for six months or a year — can save you money until you become financially established. Also, you will not be paying for insurance that you do not need.
4. Cancelled Policy
If you lose coverage through the Healthcare Marketplace or through a private insurance company, you can purchase a short-term policy to cover you and your family until you are able to enroll for the next year’s coverage. For instance, you can be terminated for nonpayment in July and not allowed to reapply until October. A short-term policy can offer you protection during that vulnerable period.
5. Life Changes
When your relationships change, so does your insurance coverage. If you are on a spouse’s or life partner’s coverage, the dissolution of the relationship usually means you will be removed from the policy, often rather quickly. Investing in a short-term policy can offer you peace of mind while you navigate the changes in your life and re-establish your independence.
The cost of these STHI policies in 2016 were approximately $110 per person, while families paid around $276 each month. Many people opted to go with short-term coverage after shopping the government marketplace website and finding even those policies too expensive for their budgets.
Everyone would be well-served to have full medical coverage. However, for many, the cost of those policies are prohibitive. Having no insurance is never a good choice. One major medical event can ruin you financially. In fact, 60% of bankruptcy A short-term policy can protect you from that possibility and ensure that you can get the treatment you need during such a catastrophe. You should never gamble with your health or your finances.