When Should You Buy A Short-Term Health Plan?

Did you know an average hospital stay will cost you about $9,000 if you’re uninsured?

Can you afford to pay this out-of-pocket? If you’re anything like the average American, the answer is a resounding “no.” In a country where many workers are living paycheck to paycheck, it’s easy to see how raising the money for a hospital stay can be difficult.

Even a regular health checkup can be unaffordable to millions of people. This is why you need to always maintain an active medical insurance cover.

But under what conditions should you consider a short-term health plan?

Read on to find out!

What Is a Short-Term Health Plan?

The name describes what it is, really. A short-term health insurance plan is health coverage that lasts a short time, usually 12 months, but can be renewed upon expiry. In other words, it’s temporary insurance coverage.

Specific coverage terms and conditions can vary from insurer to insurer, but that’s the short of it.

So, when is it prudent to buy a short-term medical cover?

You’re Changing Jobs/Out of Formal Employment

One of the best benefits of having a formal job is you’ll get medical coverage as part of your compensation benefits. Most employers purchase group health insurance plans for their workers.

Unfortunately, you’ll only stay covered as long as you’re on that job. If you lose the job, you’ll typically lose every benefit that comes with it, including health insurance coverage. Some employers might be kind enough to allow you a couple more months of coverage, but don’t bank on that.

The same applies when you’re switching jobs. When you resign from your current job, you will lose your health coverage.

Yet, it’s not smart to stay without health insurance for the period between changing jobs. If you’re starting on a new job immediately after resigning or losing a job, well and good. But if it will be a month or more, it’s best to purchase a short-term health insurance plan.

If you fall ill before you start on a new job and get the new employer’s coverage, you’ll have to pay for your medical expenses out-of-pocket.

You’re a Freelancer

Being a freelancer has its joys. But you don’t get health insurance coverage from an employer — that’s because you have no employer. You have clients.

You need health insurance but you’re not ready to purchase a traditional health plan. Maybe your finances are tight right now or perhaps you plan to stop freelancing and get a traditional job. Or you plan to leave the country (oh, the joys of freelancing!).

Either way, you need to purchase a short-term health insurance plan to keep you going.

Know When You Need a Short-Term Health Plan

Health insurance coverage is a must-have. There are no two ways about it. However, if you’re changing jobs or just lost your employer’s coverage or you can’t afford to buy a traditional health plan right now, it’s prudent to purchase a short-term health plan.

Life is uncertain. You don’t know when illness or a medical emergency will strike. Keep reading our blog for more helpful tips and advice.