Quick Insurance Tips

The current recession is forcing a lot of people to request quotes from short term health insurance providers. US unemployment statistics are moving in the wrong direction and more people find themselves looking for alternatives to COBRA.

What’s Wrong with Temporary Health Insurance?

What’s wrong? Mainly the fact that it is temporary. This means that if you develop a condition while you are covered by a temporary coverage plan, you may have your bills covered for expenses incurred during that time, but not afterwards. In many cases a medical condition that rears its ugly head during the term of a short-term policy will be considered a pre-existing condition should you seek coverage after the term has ended.

The main draw backs of temporary health insurance are:

• Preexisting conditions are not covered
• Preventive care isn’t covered
• The coverage cannot be renewed

What is Good About Temporary Health Insurance?

What’s good? The price. Usually the most affordable medical insurance is a short-term plan. Often a short-term plan can cost half as much as a similar permanent plan.  This makes these plans very attractive, especially in hard times.

You will have to weigh the obvious benefits of paying a lower price and not so obvious potential harm that a having less robust coverage can do to your family. An individual health insurance policy is often the best solution. It will usually be less expensive than a similar COBRA plan and offer more coverage than a similar short-term plan.