When it comes to health insurance, not everyone wants—or can afford—a long-term policy. That’s where short-term health insurance comes in. These plans are marketed as flexible, affordable alternatives, but what’s the real story behind them? Let’s break down what you need to know.
What Is Short-Term Health Insurance?
Short-term health insurance is designed to provide temporary coverage for gaps between jobs, waiting periods for employer plans, or other transitions. Policies usually last from a few months up to a year, depending on your state.
The Benefits
- Lower monthly premiums compared to traditional plans.
- Quick approval, sometimes within 24 hours.
- Flexible terms, so you only pay for the time you need coverage.
The Limitations
While short-term health insurance may sound appealing, it comes with some major drawbacks:
- Limited coverage: Many plans exclude preventive care, maternity, prescription drugs, and mental health services.
- Pre-existing condition exclusions: If you already have a health issue, it likely won’t be covered.
- Coverage caps: Benefits may have strict limits, leaving you exposed to high costs.
Who Should Consider It?
Short-term health insurance may be a good fit for:
- People between jobs.
- Young, healthy individuals needing temporary protection.
- Students or recent graduates waiting for employer benefits.
The Bottom Line
Short-term health insurance can serve as a safety net, but it’s not a replacement for comprehensive health coverage. If you choose one of these plans, be sure to read the fine print so you understand exactly what’s covered—and what isn’t.