Function

• Short term health insurance is available for purchase for individuals who are in between regular health insurance policies. An example of this would be when you have left your current employer and have started a new job. Your new position might not have health insurance available to you until you have completed a probationary period. In this case, you would need to find something that could cover you until the new policy took effect.
  
  

Time Frame

• Short-term insurance is meant to be used for a short period of time. It is usually used for 6 to 12 months, and most insurance companies will not let you sign up for a period of longer than 1 year. The time limit is meant as a deterrent to keep people from hanging on to a short-term policy because they are not designed for permanent use and would cost a customer more in the long run than a normal policy.
  
  

Features

• Typically short-term insurance covers major medical items, like in-patient and out-patient hospital care, radiology, lab fees and prescription drugs. The deductibles range anywhere from $250 to $7,500, with the monthly fee going down in conjunction with the deductible going up. Some will even have the option of copays for doctor visits.
  
  

Benefits

• The main benefit to using a short-term insurance policy is that an individual or family would be covered between policies on the chance that someone gets seriously hurt or sick.
  
  Although they can be expensive, they are generally less expensive than a COBRA plan.
  
  

Considerations

• Short-term insurance policies are not meant for the long term. They are more costly and do not give you the benefits of a long-term policy. They do not cover dental or vision, and they do not normally have co-pays.
  
  Also, short-term plans usually do not cover preexisting conditions. You should check with the insurance company if you have a preexisting condition to see if it will be covered. If not, you should consider finding a way to sign up for a more permanent policy.