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Short Term Health Insurance Versus Long Term

To help you evaluate both ends of the spectrum, this article describes the benefits, length of coverage, and purpose of both short term and long term health insurance choices.

When selecting between a long term and short term health insurance plan, it’s vital to ask yourself two general questions:

How Long Will You Require Your Insurance?

For periods of less than one year, a short term plan may be best. Long term plans provide annually renewable coverage so that you can keep the same plan for a long period, but tend to cost a bit more.

What Would You Like Your Plan To Cover?

If you have pre-existing conditions, plan on becoming pregnant, or would like a more comprehensive plan, long term insurance may be your best choice. If you require doctor visits and general coverage, the short term insurance may be ideal.

Short-Term Insurance

What It Is

Often known as travel insurance plans, short term policies are specifically intended to cover both medical and travel experiences for one year or less. They allow you to select your policy maximum and deductible, permitting you to stay in control of your coverage and the cost.

What It Does and Does Not Offer

Because you can typically only have your coverage for one year, these plans will not cover long-term conditions such as maternity, mental health, and pre-existing conditions. Though, they will provide coverage for new illnesses or injuries while on your trip, as well as doctor visits and hospitalizations. Travel benefits such as trip interruption and lost luggage are also included, so ensure you check the policy wording for details.

Who It Is For

Because domestic plans typically don’t cover medical expenses overseas, these plans work well for individuals and families traveling outside of their home nation looking for general coverage. Regular travelers also get great use of these plans, since travel-associated benefits such as lost luggage or trip interruption come standard.

These plans also work well for learners on shorter study abroad programs who do not require to meet strict insurance requirements. In some situations, short term health insurance can be great plans while waiting on long term coverage through an employer or a private company.

Long Term Health Insurance

What It Is

Long term health insurance (often called primary medical insurance) is annually renewable and comprehensive options precisely designed for you to stay on the same plan for long periods. Because you will typically keep a significant medical plan for many years, they are medically underwritten – meaning you will require to answer health questions to ensure you’re qualified for coverage. Unlike travel plans, which allow you to select your policy maximum and deductible, long term insurance coverage is typically less flexible, but provides a higher policy maximum and additional benefits, like preventative care.

Who It Is For

Long term international insurance plans function well for both individual expatriates and families requiring coverage for at least one year. They also work well for international students, permitting them to keep the same insurance plan throughout their studies. Anyone with pre-existing conditions or planning to become pregnant would be interested in long-term health insurance because newborns are generally added to a plan automatically, and pre-existing conditions are covered automatically or after a waiting period.

What It Does and Does Not Cover

While these plans are more costly, they will offer many benefits not covered by short term plans, like pre-existing condition coverage, wellness visits, and preventative care. Indeed, no insurance plan can cover every visit, but long term options will generally provide the most coverage.

Resources and References:

• Coverage for Pre-Existing Conditions
• Annual Renewable Coverage for Health Insurance
• Health Insurance Network Coverage