• Short Term Health Insurance Blog

  • Friday, November 24, 2017

  • The Short-Term vs. COBRA Insurance Debate-I: The Cost Factor

    Filed Under: Blogging

When you find yourself suddenly unemployed, you might wonder whether the right insurance coverage for you is short term health insurance or COBRA insurance. It’s important to understand how the two differ before you make your choice.

Short-term health insurance is less expensive than COBRA insurance, sometimes costing less than a third of COBRA insurance. This makes short term health insurance the first choice for many. The cost factor becomes especially significant because the plan holder does not have a job, and can ill afford expensive insurance at that point.

The reasons that short term health insurance is less expensive is that short term health insurance typically does not cover pre-existing conditions, as its nature is to provide a stop-gap arrangement. However, COBRA insurance is meant to continue the coverage you were getting when you were employed, so that you need not suffer additional agony because of the loss of your job.

Most people choose short term health insurance to tide over the temporary period, and that will work for you too if you or your dependents do not have any pressing pre-existing conditions that need to be taken care of.

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« The Short-Term vs. COBRA Insurance Debate-II: Pre-Existing Conditions How to Know When Temporary Insurance Runs Out? »