Short Term Health Insurance
The health insurance plans available on offer by the insurance agencies come under various categories as they are expected to target people with varying needs. The short term insurance is for people who do not want to avail insurance for long durations due to various reasons and are not ready to commit for a period such as a year or two. Under this plan, health insurance cover can be taken for a period as small as a month, i.e. 30 days.
The best part about this insurance plan is that it if the qualification criterions are met, it can be applicable from the next day itself. The disadvantage lies in the fact that the qualification criterions are pretty complex. First and foremost, they are not applicable for the elderly above the age of 65, which leaves them with only the regular health plans. Secondly, the insurance does not take into account any prior ailment and the cover is only applicable for problems that might occur during the time of validity of the plan. This plan is extendable to up to 3 years.
Advantages: The advantages for the short term insurance plan are many. Under such a plan, the policy holder is not restricted to any particular set of doctors and can visit anyone as per the wishes. There is a provision to get the family and the children enrolled into the same policy. The financial requirements for the policy are limited because of the short term which reduces the probability of an accident occurring during the course of the policy. There is more probability of a person applying for a claim who has a cover for a year than someone who has it for a month. Unless in emergency conditions, all medical treatments have to be undertaken after taking an approval from health insurance agency. This is a compulsory step without which, the claim may be called void.
Disadvantages: The disadvantages are far from few. In case a claim is filed during the period of the cover and is approved, the cover is blown. One needs to reapply for the cover again in such a scenario in order to continue using the services by the company. Also present in the clause is that the illness for which the treatment has been undergone would be treated as a pre existing condition. This does not go well with the insurance policy holders. All further declaratives from the company need to be understood as this kind of policy is fairly complicated.
Overall, the disadvantages far surpass the advantages and hence should be avoided as far as possible. It is only good for people who are frequent travelers and need to relocate on constant basis. Most people who fall under this category are the working class and the job switchers. They can also be used as temporary insurance while waiting for the actual insurance policy to come through to provide for the much needed security. Once that comes, this policy can be dropped and the new policy carried forward.