• Short Term Health Insurance Blog

  • Saturday, February 04, 2012



The fresh graduate gains most through short term health insurance because of the advantage that he can take of the gift of time at this crucial stage in life.

The coverage given to students during their study in the college ceases as soon as the student graduates. In fact, most graduate students on optional practical training lose their health insurance, if purchased through their institution. However, not having a health insurance plan does not guarantee that the student will be in the best of health during the time it takes to look for and get a job.

The added benefit with short term health insurance is that while the job hunt takes the student to different states, the student can go to any doctor or hospital covered in the wide network of short term health insurance plans. If the illness extends to a little more over the anticipated time of few weeks, there is no need to ask parents to cover the costs.

Recent graduates are usually looking to take responsibility for themselves. In this situation, short term health insurance can prove to be a first step toward self-reliance.


Why is short term health insurance necessary at all when you have well-laid plans on how to deal with your life? Mostly because life has a way of imposing its own rules on you, especially when it comes to your health.

Consider this: You take a six-month break from the job for some down time to visit people and see places. You plan the entire six months with the savings meeting the expenses comfortably. Seems like a good deal and you are confident that you can get back on the job bandwagon given your track record and high energy.

Then, during the fifth month of your break, your doctor tells you that you need an emergency hysterectomy. The doctor assures you that you will be up and running within two months or less. But you ask friends and relatives and they all tell you how it would take more than three to six months and that too would be a slow recovery.

Short term health insurance is ideal for you. You plan the small cost of the health insurance into your break plan and be assured that an illness during the end of your break does not tie you down.


For those who don’t like to follow the rules, short term health insurance can prove an understanding companion. Short term health insurance is not just for those who have been laid off from their jobs, or early retirees. Those who simply follow their hearts can benefit from it too.

Let’s say that John Sadiris, a manager at a publishing firm, is looking for a change from his nine-to-five job. He has decided to take some time off, and pursue a hobby that he left midway—carpentry.

John has saved enough to take him through one year, and hopes to work part-time to make up for any deficit. Sounds great so far, doesn’t it? But one vital issue still remains: What if John were to fall ill, or get injured in an accident? His company, which has given him a one-year sabbatical, will not offer coverage, and it is dangerous to live without insurance as well.

COBRA insurance is one possibility, but an easier and less expensive option is often short-term health insurance, which protects against unplanned medical illnesses and accidents. Short term insurance is ideal for periods up to a year (if known), and covers most inpatient and outpatient care.


If it’s only a short time, why can I not just be uninsured? Why do I even need short term health insurance? This is the question that most people ask. The answer is obvious in the very nature of the U.S. healthcare system. The U.S. healthcare system is renowned for its high cost.

Even a simple visit to a physician can run into hundreds of dollars. The treatment for a fracture can run into thousands of dollars, and surgery will certainly eat into your savings. The costs are astronomical, when compared to most countries in the world.

Whatever be the reasons for the high cost, the fact of the matter is that U.S. healthcare is very expensive. What this means is that any sudden illness can be doubly difficult to deal with—not only are you mentally and physically unable to handle it, it is also very heavy on the pocket.

Even if you simply fall on ice and dislodge a bone, you are in for heavy expenses. You cannot even postpone the treatment until you receive long term insurance—sudden expenses also usually require you to take care of them right away. So, the best way to ensure that you are well-placed to deal with injuries and illnesses is by purchasing short-term health insurance, which is typically not expensive.


For short term health insurance that acts primarily for safety in low-risk situations, Secure 12×3 STM offers appropriate medical insurance. The plan is ideal for those whose period of non-insurance would otherwise be a year or more. It is especially useful for early retirees, and those taking a break in their careers.

The Secure 12×3 STM plan is administered by Health Plan Administrators, Inc. The plan covers doctors office visits, hospitalization and in-patient services, emergency room services, surgery, organ transplants, and mammography. The plan also covers AIDS treatment, and pap smear tests, subject to conditions.

Under the plan, many of the medical treatment options have limits on coverage. You can choose between four deductible levels: $500, $1,000, $2,500, and $5,000. After the deductible, the plan has two co-pay levels: 80% or 50%. After $10,000 of covered expenses, the plan pays 100% of the covered expenses.

Secure 12×3 STM offers a maximum benefit of $750,000. To be eligible for the plan, you must be under 65 years of age, or dependent children, under the age of 19. The plan is valid for one year, and in that respect, differs from most short term health insurance plans.


Short term health insurance is not just for those who have lost their job! Max Stopman, a manager with a law firm, wanted to explore the world and enjoy the rest of his life, as he had done some great estate planning. He had a substantial nest egg that he didn’t want going waste.

So, Max opted for early retirement from his company, at age 62. Medicare kicked in only at 65, and he had a three-year health insurance gap. His company’s financial advisors told him about COBRA, which provided coverage for 18 months after he left his job.

However, Max had to pay the entire premium, which would cost him a tidy sum. Max, relatively healthy, was looking at the options he had. So what are Max’s realistic options? For one, Max can opt for COBRA insurance for 18 months, and follow it up with one of several short term health insurance plans available in the market.

Another option for Max would be to purchase short term health insurance at the first instance, preferably with international coverage, as that would take care of his travel insurance needs as well. Lastly, of course, Max could opt for long term health insurance. Short term insurance, however, probably gives Max the best value for money.

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