Short term health insurance policies are designed to tide populace through short lapses in medical insurance coverage. Some shift in your lifestyle, such as you are graduating from college, leaving home for the first time or between jobs, often dictate a change in your health insurance coverage. For these situations, many health insurers provide short term health insurance policies to fill up the gaps between usual policies. This type of policy is also an ideal solution for those who have just lost health coverage, but are waiting to get new coverage within a year.

Though most short term health insurance policies offer coverage from 30 days to 6 or 12 months, you can find a policy on this health insurance that will cover you for up to 36 months. Compared to other types of insurance, including COBRA continuation coverage, the short term health insurance policies are significantly cheap. Some short term policies offer comprehensive coverage for less than $100/month. This is the main reason why some people who lose their job-based insurance opt for short term policies rather than electing COBRA.

Before making a decision to purchase a short term health insurance policy, you have to study well what you are getting for your money. For example, a policy is available for $50 per month and has a $3000 deductible per injury or illness. Here you will be paying for almost all of your medical bills out of pocket. This type of policy would only guard you if you underwent an extremely costly injury or illness. So it is very important to study your policy papers and understand what your likely out-of-pocket expenses will be.

Short term health insurance policies normally cover surgery, hospital care, emergency services, diagnostic tests, prescription drugs, follow-up office visits, and even limited mental health care. The policy does not take in routine preventative care and preexisting conditions.