Temporary Health Insurance
Temporary health insurance is very important coverage to have although it is coverage that is most misunderstood. It is a plan designed to cover your assets during those periods when you are not able to have a permanent policy. A temporary health coverage plan works well when you are between jobs, where group health insurance benefits would be enjoyed. Laid off from a job and on a COBRA extension that really isn’t affordable without a paycheck. Or perhaps for someone waiting to become eligible for benefits at a new job. Sometimes it can work as a student health insurance plan, but often a permanent policy can usually make more sense in this case. Apply it to your situation to see if it’s a fit.
Notice it says, “cover your assets” what’s that about? Temporary health insurance, well all insurance, is purchased to protect against a financial calamity if an unanticipated and catastrophic event should occur. Other than getting a yearly physical exam, paid for by the insurance company, health insurance doesn’t do much to protect health. There is a misconception that health insurance is purchased to protect health. People have said to me, “ I’m healthy, so I don’t need health insurance.” They don’t realize that, if they had preexisting health problems, they couldn’t even buy health insurance because they would be declined by the insurer.
Insurance is for the unforeseen and unknown future. The one exception to this is group health insurance where preexisting conditions are covered.
Temporary Health Insurance – Reasons to Buy
You buy health insurance when you are healthy and do not require care. I’ve asked a lot of people over the years why they were shopping for health insurance after going without it for years. Most of them suddenly understand why we get health insurance. A friend or relative had a major medical event that caused them to be ruined financially and they don’t want the same to happen to them.
The cost of temporary health insurance is less than the cost of a regular permanent policy. If a sudden major medical event were to happen to you without some health insurance to pay for it, you could end up as another bankruptcy statistic. The cost of temporary health insurance is a good bargain compared to a crushing load of medical bills and bargain priced compared to a permanent policy. We buy it to protect our financial health and that of our family.