The unfortunate truth is that anyone can suffer an illness or be involved in an accident and while this can be a difficult time, the financial implications have the potential to make this worse. Medical bills can be expensive and being prepared to cope with these is common sense planning. This means having health insurance, and while having a permanent policy is the best option there are situations where temporary health insurance makes sense.
Losing a job
Many people gain access to health insurance through an employer and this can be an affordable way to do so. However, when losing a job the benefits that came with it will also typically be lost, and this can leave someone without health insurance coverage. In this case a temporary policy can be a sensible idea to provide coverage until such time that a new job is found and permanent coverage can be resumed. There are generally a couple of options for the unemployed. The first of these is COBRA (Consolidated Omnibus Budget Reconciliation Act of 1986), which is a federal program designed for those that lose a job. Under COBRA it is possible to get a temporary extension of your previous employer’s group health plan for a period of up to 18 months. However, there are a few conditions attached including that you must apply within 60 days and must not have been fired due to gross misconduct. Another point to note is that the employer is no longer obligated to contribute to the costs and therefore it may be more expensive as you will likely have to foot the bill for the entire monthly premium. Nevertheless, it is an option to consider and saves having to find new insurance or be left without coverage. The second option is to take out a private temporary health insurance policy. These typically run for around 1 to 12 months, although in some cases can be extended, and these are basically designed to cover a short term health insurance gap.
College students in the job market
While going to college and earning qualifications will likely improve your chances in the job market, it does not guarantee that you will find a job straight away on leaving school. College students entering the job market may find that it takes a little time to find a job and in this situation taking out a short term health insurance policy can make sense. It can help to provide some leeway until such time that a job can be secured which provides health benefits or the funds whereby permanent insurance from a private company can be secured. Temporary health insurance tends to be a more affordable option and this can be useful for those finishing college and yet to find full time employment.
Children losing dependent status on parent’s health insurance
Many children will be covered for health insurance on their parent’s policy and it can be possible to carry this on up to the age of 26. However, at some point children will have to strike out on their own, and it may not be the case that they are in a position to get permanent coverage when they are no longer applicable to be included on their parents insurance. Temporary health insurance can be of assistance at this time and will allow a child to maintain health insurance coverage at a more affordable cost until such time that they can arrange for more permanent health insurance.
Travel Insurance
Many people regularly travel internationally, and this can be done for either business or leisure purposes. While permanent health insurance will typically cover you in your native country, it may not be applicable if you travel abroad and this can cause a short term gap in coverage. While falling ill or suffering an accident in your own country can be a difficult time, the difficulties can increase when in a foreign country. Opting for temporary travel health insurance to cover you while overseas can ease the situation a little. It can help to ensure you get the treatment required, without having the added worry of the cost.
Changing Jobs
While losing a job can be a worrying time in terms of heath insurance, many people make the choice to change jobs or careers on their own terms. This can result in a short period of waiting for a new job to start and even when started, it usually takes a little time for benefits to be put in place. For those relying on health insurance coverage through their employer, this can mean that there is a short period of time, between finishing an old job and waiting for the benefits to start on a new job, where they have no coverage. Temporary health insurance is a simple way to fill in the gap to ensure that continuous coverage is maintained between jobs.
Health insurance is an important consideration for most people and having this in place can provide some peace of mind that illness or injury will not cause financial problems. While permanent insurance is generally recommended, there are situations where a temporary health insurance policy can make sense. The situations identified above are some of these, although short term health insurance should not be seen as an alternative to more permanent coverage and should typically only be used to fill in an insurance gap.