You could find yourself without health insurance cover in situations like changing jobs, choosing a new long-term insurance plan or waiting for a group insurance policy to become effective. Short-term health insurance is meant to protect you during such breaks. This coverage can also include your spouse and children. Such policies are normally issued for one to six months. They usually cannot be renewed, but most insurance companies allow you to apply for a similar policy when the existing one expires.

Coverage becomes effective within 24 hours of submitting the application. However, you can defer the effective date of the policy up to 30 days. The application is a easier process than that of a standard insurance policy. Some insurance companies charge a processing fee of $25.

There are certain contingencies that short-term health insurance does not cover. These include per-existing medical conditions(medical problems that have been diagnosed and treated during the previous three to five years), dental and vision care, immunizations, medical check ups and preventive care. Apart from these, though specific policies may vary, a short-term policy would normally offer the same coverage as regular policies. The maximum pay out by the insurance companies in short-term policies is likely to be fairly high.

Since the policy is for a short term, you could opt for a higher deductible and reduce the premium. Deductible means the amount you must pay to meet your medical bills. The insurance company will pay all expenses beyond that.

If you are not sure how long you will require coverage, it is better to opt for monthly premium payments. Otherwise, choose to make one payment up front, and the cost will be less.

A short-term policy is only a temporary measure and not a substitute for regular health insurance cover. Once your long-term policy becomes effective, contact your insurance company and cancel the short-term policy.