Temporary health insurance offers financial protection for a short coverage term to a policyholder in the event of an unexpected illness or injury. This health insurance, also called short term health insurance, offers cover for major hospital, medical, and surgical expenses incurred as a result of care needed for the treatment of an illness or an injury.
Unlike regular health insurance plans, temporary health insurance allows one to take treatment from any doctor and hospital. This insurance pays for all the covered expenses of a policyholder after the person has paid the deductibles and coinsurance amounts.
Temporary Health Insurance: Features
A temporary health insurance policy, unlike a standard one, has a coverage term, which can range from 30 days to 12 months from the date of purchase. Following are the features of this policy:
Covers the treatment of policyholders if they fall ill or suffer an injury during the term of the insurance policy.
One can opt for a monthly billing option for the entire term of the coverage.
Does not cover expenses associated with check-ups or other preventative measures. Dental care or immunizations are also not covered under temporary health insurance.
Only valid for the specified period and its validity expires the moment one receives permanent health coverage.
May require one to provide a medical certificate to confirm good health.
Is renewable for another coverage period.
The renewal is dependent on the insurance company and a policyholder’s circumstances. If one has already made a claim on his/her temporary coverage, s/he might find it difficult to get the cover renewed. Even if one succeeds, there is a high probability of the premium increasing for the next term. Most insurers renew a policy if they feel that the policyholder might buy a permanent insurance cover soon. Temporary health insurance should not be used as a replacement for standard health insurance.
Temporary Health Insurance: Who is Eligible?
Temporary health insurance is designed for people who do not have regular health insurance for some time. The following people are eligible for this temporary health cover:
Those who are in between jobs, without a job or on strike.
Those in part time or temporary jobs.
School students or those who have just graduated.
Those who are awaiting permanent health insurance to commence.