Short-term health insurance poses relatively less risk for insurace companies, which is why they are willing to give coverage for a significantly smaller amount than traditional medical coverage. This is perhaps the biggest advantage in the eyes of those that go for this type of medical insurance. However, aside from that short-term health insurance has other advantages, including the following:
- They can be use in any hospital and with any doctor within the country.
- Coverage starts the day after the application is postmarked.
- Can cover all eligible dependents.
- Some plans also give a “Certificate of Creditable Coverage”, which guarantees your current state of health, thus disallowing other insurance companies denial of coverage based on pre-existing conditions.
Of course there are also disadvantages to short-term insurance. The most glaring disadvantage is perhaps the fact that there is no guarantee that you will always qualify for another plan when the short-term health insurance policy expires. Aside from this, short-term health insurance plans do no cover dental and vision problems, as well as pregnancy and childbirth.