When you purchase temporary health insurance, you have a policy for a limited number of months. Most temporary health insurance lasts only 1 year. It's for people who are between jobs, falling off a policy because of changing from a minor to an adult or waiting for permanent insurance to begin.
Out-of-pocket
Temporary health insurance covers every thing that permanent insurance does. Most policies are relatively simple and contain a deductible, co-insurance and maximum limit that they'll pay. There's also an out-of-pocket limit for you. It includes the deductible and co-insurance. The deductible is the amount you pay before the insurance company pays anything, and co-insurance is a percentage, such as 80/20 where they pay 80 percent of the claim and you pay 20 percent. Once you reach the out-of-pocket maximum, they pay it all. Temporary health insurance often costs less because the potential for a claim is less.
Applications
You can get temporary health insurance by using the application found in brochures at many locations. Some colleges allow insurance representatives to leave theirs in common areas. You simply fill them out and mail them in with a check. Other ways to secure temporary coverage is on the Internet or by calling either a local agent or an insurance company that sells the product.
Health Qualifications
Check the qualification requirements. There are several reasons that you can't get temporary insurance. If you are overweight--typically over 300 pounds for men and 250 pounds for women--then you might not get the temporary coverage. If another insurance company declined coverage, you won't get temporary health insurance. Other reasons for rejection include medical treatment, test results that weren't normal, going to a doctor or taking medication for chest pain, heart attack or disorder, emphysema, ulcerative colitis, HIV positive, hepatitis, Crohn's, diabetes, cancer, kidney disorder or stones, alcohol or chemical substance dependency or stroke in the last 5 years.
Start Date
If you answer the health questions indicating you're in good health then purchase a temporary policy, you'll get almost immediate coverage. Most policies begin coverage either the date of the postmark or the business day following the day you signed up for it if you purchase it by phone, through a local agent or the Internet. If you fell into any of the categories that might mean a decline, you might want to apply anyhow, particularly if you're very tall and weigh more than suggested. Some companies offer a monthly plan but give a discount if you pay for the period selected in full.
Claims
Temporary health insurance works just like any other type of insurance once you secure a policy. If you have a claim, they cover the claim when you turn it into the company. Some physicians and hospitals turn the claim in for you so you don't have to mess with it.
Renewals
Renew your policy on term period. Most temporary policies allow you to renew at least one time. A few companies allow two renewals. This is particularly important for people out of work. If your policy runs out and your health is good, you can get another policy with a different company.
on 2/21/2010
I would add that I would not sell these products to any client who has a pre-existing condition and is currently getting treatment. These policies specifically exclude any prior conditions. I would make sure that you know what your deductibles and co-insurance is on the plan before signing. Families especially need to take care that it is a family deductible and not a per person deductible.
Comments
cinder24 said
on 2/21/2010 I would add that I would not sell these products to any client who has a pre-existing condition and is currently getting treatment. These policies specifically exclude any prior conditions. I would make sure that you know what your deductibles and co-insurance is on the plan before signing. Families especially need to take care that it is a family deductible and not a per person deductible.