• 19
  Jan
  2010

• Short Term Insurance Can Be a Lifesaver in the Long Run

  
  Filed Under: Blogging
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What many people don’t realize is that short term health insurance serves as a great alternative to COBRA insurance, especially in today’s economic scenario. COBRA insurance ensures coverage for up to 18 months after a person loses his/her job. It also works well for those who are in between jobs, or have shifted over to a part-time position with no health benefits.

The rules for eligibility for COBRA insurance are very strict, and it is also more expensive than short term health insurance in some cases. Short term medical insurance works as temporary insurance and covers most unplanned medical expenses.

Some typical benefits include hospitalization, consultation, and emergency services. Routine care is usually not covered under short term health insurance. However, short term health insurance cannot be considered for permanent coverage and is best for coverage up to a year, at most.

After short term health coverage, if the plan holder gets back on regular long term health insurance, the coverage is considered as creditable coverage for group plans. What that means is that the coverage counts toward calculation of pre-existing conditions and other factors. Short term health insurance also scores over COBRA in its ease of signing up. Usually, there is no lengthy underwriting process involved.