• Short Term Health Insurance Blog

  • Wednesday, July 26, 2017

  • How Does Short Term Health Insurance Save You Money?

    Filed Under: Blogging
If you do not currently have health insurance, or you are about to not have it because of a professional transition such as a pending layoff or starting a new job, then saving money is likely a huge priority for you. With that in mind, it may be hard for you to rationalize making payments out of your own pocket to buy insurance. However, short term health insurance can actually save you money.

It does so in three ways. First, you can buy it for only as long as you need it. So instead of buying a health insurance plan for a year when you only need something for the few months before your new employer will allow you on their insurance plan, you can purchase a shorter duration of coverage. So you will save money by not paying for two different plans once your new one kicks in.

Second, it is cheaper than other temporary insurance alternatives you will find on the market. For example, when most people are terminated from their jobs or leave voluntarily, their human resources department tells them about COBRA coverage. COBRA allows them to keep the same level of coverage they had before their job transition, however it comes at a much steeper price. Since you will be covering the amount of premium costs that your former employer used to cover, you will now be looking at anywhere from 4-10 times what you normally paid for insurance. Coverage for a family could skyrocket from a few hundred dollars per month to over a thousand!

Finally, short term health insurance saves you money when you actually use it. Without insurance, a simple visit to the doctor will cost you hundreds of dollars. Short term coverage can save you significant amounts on those visits as well as emergency services and additional hospital treatment.

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