Monday, May 4, 2009

Benefits And Coverage Of Short Term Health Insurance

Benefits And Coverage Of Short Term Health Insurance

A short term health insurance is a health insurance that provides coverage for a shorter period say from 6 months to a year. It is quite economical when compared to other long term coverage plans and are of tremendous help to students and temporary workers who cannot afford to spend much on health insurance policies. In this article we shall study the benefits, coverage and eligibility conditions of a short term health insurance plan.

Benefits of a Short Term Health Insurance
The following are the benefits of taking up a short term health insurance.

* Low Cost: The cost of a short term health insurance is much lower than that of a long term insurance plan. The reason why the premiums are low in a short term insurance policy is that it doesn’t cover the pre-existing illnesses, thereby reducing the risk. These policies generally protect for a year and there is less likelihood of anybody falling sick in such a short duration. Hence, there are few people who make claims, thus making it affordable and cheap.

* Coverage: A short term health insurance plan generally covers all hospital-related expenses, unforeseeable and life threatening illnesses and rehabilitation expenses. Thus this policy takes into account almost all major health related problems.

* Suitable: Because of the inherent design of these polices, they are very suitable for students, temporary workers, part time employees etc., who cannot afford heavy premiums. Visitor medical insurance is a must if you are traveling to USA.

Types of Coverage
Most short term health insurance plans either offer PPOs or FFS indemnity plans.

* PPO Plan: A PPO plan of a short term health insurance policy is a kind of “managed care”. This plan provides an easy access to a huge network of doctors, clinics, hospitals and specialists. But that doesn’t mean that one shall not be permitted to see other doctors, it only means that you will make savings if you consult in-network doctors.

* FFS Plan: In a FFS plan, you will not be provided coverage by the “provider”. In fact, you will be given coverage by “medical service”. This gives the buyer freedom to see any “provider” as long as the service stands covered in the FFS plan. This makes FFS plans more expensive than the PPO plans.

Who All Are Eligible For a Short Term Insurance Plan?
For becoming eligible to go ahead with a short term health insurance policy, one must comply with the following eligibility conditions:

* You should not be more than 65 years of age.

* You should not have a record of a denied health insurance previously.

* You should not be covered with any other health insurance policy.

* Short term health insurance policies come with certain physical specifications like height, weight etc. one needs to comply with those conditions to be eligible for a short term health insurance plan.

Selecting a company that provides just the right insurance plan for you is an important task.

By: Richart Rick

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