Saturday, March 30, 2013
The Difference Between Short Term Health Insurance And A Regular Medical Insurance
All insurance plans are contracts between the insured and the firm providing the plans. And just like any other medical plan, short term health insurance has to be approved by the state government. Every health plan is paid on a monthly basis that you are able to cancel anytime at all. What is the main difference of short term plan from a regular plan?
The main difference is the liability of the insurance company when it comes to paying damages. The term is based on the amount of months you can obtain coverage. The insurance policy will finish at the end of a 6 month to 11 month period for short term health plans. You might be permitted to sign up for another plan right after the end of the policy. However you might not be eligible to resume the plan if you experienced a major claim while you had the policy.
On the other hand, regular plans are issued without any expiration date. The insurance company does not have the luxury of cancelling coverage unlike insurers who can drop out anytime. Perhaps the only time this statement is an exception is when the company is dissolved or bankrupt. The basic premise is that the company has to charge more when their liabilities increased. For this reason underwriting for normal plans is so far more involved. Smoking can be a problem particularly for those with plans greater than five years. But for short term plans, it might not be an issue and will not require any medical checkup.
Regular insurance plans usually have co payments for prescription drug benefits and visits to the doctor. These advantages cost more so they are not in most short term health insurance plans. All plans used to be created like short term health insurance plans with a co-insurance and deductible for all medical expenses. The concept is pretty much the same as temporary plans are within the $500-$5000 deductibles compared to 25-50 dollars before.
There are many different choices for families and individuals. For those who will need insurance for a few months, then short term insurance plans are quite handy.
The main difference is the liability of the insurance company when it comes to paying damages. The term is based on the amount of months you can obtain coverage. The insurance policy will finish at the end of a 6 month to 11 month period for short term health plans. You might be permitted to sign up for another plan right after the end of the policy. However you might not be eligible to resume the plan if you experienced a major claim while you had the policy.
On the other hand, regular plans are issued without any expiration date. The insurance company does not have the luxury of cancelling coverage unlike insurers who can drop out anytime. Perhaps the only time this statement is an exception is when the company is dissolved or bankrupt. The basic premise is that the company has to charge more when their liabilities increased. For this reason underwriting for normal plans is so far more involved. Smoking can be a problem particularly for those with plans greater than five years. But for short term plans, it might not be an issue and will not require any medical checkup.
Regular insurance plans usually have co payments for prescription drug benefits and visits to the doctor. These advantages cost more so they are not in most short term health insurance plans. All plans used to be created like short term health insurance plans with a co-insurance and deductible for all medical expenses. The concept is pretty much the same as temporary plans are within the $500-$5000 deductibles compared to 25-50 dollars before.
There are many different choices for families and individuals. For those who will need insurance for a few months, then short term insurance plans are quite handy.
About the Author:
Learn more about family life insurance company PA. Stop by Carol Johnson's site where you can find out all about short term health insurance PA and what it can do for you.
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