Just like in long-term health insurance policies, short-term ones will not cover pre-existing conditions. So if you have been diagnosed with a medical condition before applying for a short-term or temporary insurance policy, it could not be used to cover costs that may arise from medication of your pre-existing medical condition. This is just one of the similarities between these types of health insurance policies.
Short-term insurance policies as its name suggest is a form of policy that will last for a short period of time and to be more exact this can lasts from 6 to 12 months. There are even shorter policies which could run for up to 30 days only.
A major difference between short term and long term health insurance policies is of course the time. But apart from that, it will not cover preventive care like physical exams. But it is designed to cover serious health conditions.
If you sign up for this kind of plan, expect that you will become ineligible for the guaranteed insurance coverage. Guaranteed insurance coverage means that you are covered whatever the state of your health is. . If it is your decision to get this form of coverage in order not to think and be overly concerned with your health, then it is logical that the short term insurance is not for you. Better look for other options for you. After all, you would have the last say before you get a health insurance policy.
The good thing about this type of insurance policy is that it is of course cheaper. For example, students and those in-between jobs will like the flexibility offered by this insurance plan. This plan is also better for the person waiting to be covered by a group insurance plan and wants some form of coverage in the interim. Also, people in good health can take out this policy which could be cheaper albeit risky as they could develop a serious medical condition afterwards and not be covered long-term. As stated earlier, you will have the last say on what type of insurance you want to take out for yourself.
Weigh out your options before getting a short term insurance policy. If you are planning to get a long term health insurance policy in the future but cannot afford one today it could be a good alternative for the mean time. Then afterwards, you can just take out a long term one when you have the budget.