Almost everyone will experience a period during their working life when they have a gap in health insurance coverage whether it's due to a job change, job loss, or other unforeseen circumstance.

Temporary Health Insurance

If you ever find yourself between jobs without health insurance coverage, you may want to consider purchasing temporary health insurance. You might need temporary health insurance if you are waiting for permanent health insurance coverage to take effect. For example, if you have just graduated from college, you may be looking for a job, and many jobs now have a waiting period before you are covered by their health insurance.

The basic function of temporary health insurance is to protect you in the event of an accident or an unexpected medical expense. It is not intended to provide benefits for ongoing health conditions or routine medical expenses.

Generally, temporary health insurance is good for periods as short as 30 days and may extend up to six or even twelve months. A minimum of 30 days is usually required so even if you need insurance for a shorter period of time, you will need to pay for a full 30 days of coverage.

Temporary health insurance does not usually cover routine expenses or immunizations. If you are pregnant, you will probably be denied coverage as most plans do not cover maternity expenses. Mental health benefits are usually excluded as well. You will not normally have benefits for dental, vision, or prescription coverage. However, occasionally, health insurance companies will offer a discount program for these types of services in addition to the regular benefits they provide.

In general, the application process is easier for temporary health insurance, and your coverage can sometimes start immediately. Underwriting restrictions will vary with each company and with different states. Either the health insurance company will exclude all pre-existing conditions or they will refuse to give you coverage if you have been treated for specified conditions within a certain period of time.

When purchasing temporary health insurance, here are a few factors to consider:

Is the premium reasonable?
Is there good coverage for accidents?
Can you save money by making a single up-front payment as opposed to ongoing monthly payments?
Do they offer any discount plan in conjunction with the health insurance?

COBRA Insurance

If you've ever left a job which gave you health insurance, you have probably heard the term "COBRA insurance."

Basically, COBRA insurance offers you the option to continue an employer-sponsored group health insurance plan for up to 18 months after you leave a job. If you become eligible for other group coverage before then, the coverage will terminate when the new group coverage takes effect. In this way, you can continue group health insurance without any gaps in coverage.

COBRA plans are good in that you can continue your original coverage with no pre-existing condition restrictions. However, you will now be responsible for the entire premium amount. In some cases, this cost can be prohibitive - especially if you are paying for family coverage. If you know that you will be acquiring your own policy, it is best to do it as soon as possible. If you are on COBRA and come down with a serious illness or disease you may be uninsurable when COBRA ends. For this reason alone, it is best to apply for your new policy as soon as you can, while you are healthy!

Steven D. Smith is a licensed life and health insurance professional and CEO of SDS Financial, LLC.  He is also the author of the “ 2008 Guide to Choosing and Using Your Health Insurance Plan” and “ Your Guide To Good Health Insurance”.  Other articles and books about Health Insurance written by Steven Smith can be found at his website www.AvoidingBadHealthInsurance.com  

Source: http://www.AvoidingBadHealthInsurance.com

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