Let's explore the differences between long-term care insurance and short-term medical insurance, both of which are types of health insurance designed to help people through difficult times in their lives.
Long-Term Care Insurance
If something happens to you, such as a car accident, illness or injury that leaves you unable to care for yourself or your family, you may consider a long-term care insurance policy that will help pay for the care you need while shielding your financial future from depletion. Because long-term care can chip away at your savings and investments, you need some sort of protection in place.
You may find yourself in a rehab facility, nursing home, hospital or outpatient center with astronomical costs that you can't possibly afford on your own. Thinking ahead and purchasing a long-term care insurance policy is wise so you never have to be hit with mounting bills that could leave you broke.
There are many plans to choose from so you can get the services you need, such as bathing, dressing and eating. How much you pay for the policy you want will depend on the following factors:
- Your age
- Max per day amount the policy will pay
- Max number of days or years the policy will pay
- Optional benefits such as those that go up with inflation
Short-Term Medical Insurance
You may have heard this being called temporary health insurance, but they are both one and the same. In a nutshell, short-term medical insurance bridges any gaps in your health care coverage that may arise during times of transition, such as after an injury and before you go back to work. Just keep in mind that if your health is not good overall, you may have trouble qualifying for this type of policy, as it typically requires a medical underwriting process that will determine if you are eligible or not.
While not regulated by the Affordable Care Act, short-term medical insurance provides an affordable safety net during times of transition from one life event to another without a health plan, according to HealthInsurance.org. This could cover anything from the loss of a job to recent college graduation to divorced or retired. Because they are indeed short term, they only last about six months if needed and can't be renewed. That said, some states allow you to purchase two back-to-back short-term plans to ensure adequate coverage.
Short-term plans generally don't cover pre-existing conditions, maternity leave, preventive care or mental health care. You will likely have to undergo basic medical underwriting to determine your eligibility for coverage.
Contact Bosworth & Associates
Contact us at our convenient location in Tyler, TX, at 903-266-1699 to learn more about the short- and long-term insurance plans we offer. Our friendly associates are standing by to give you a free quote.