Identification

• Temporary health plans, also known as short-term health insurance, is intended to cover an individual in the case of an emergency or accident. They are not meant to be used for preventative care or surgery that is not related to an unforeseen accident. Because of this limited coverage, these plans are more affordable than comprehensive plans.
  
  

Time Frame

• These plans are best for those who need coverage for 1 to 12 months, such as those who have recently lost a job or their COBRA coverage, or young adults who are too old to be on their parent's health plan but have not yet found their own.
  
  

Warning

• There are two main drawbacks to short-term plans: they don't offer coverage for preexisting conditions and purchasing a plan can make you ineligible for a HIPAA (Health Insurance Portability and Accountability Act) plan. If your main purpose for purchasing a temporary plan is to cover against a preexisting condition or if you want to purchase a HIPAA plan, you should not buy a temporary health plan.