California Life-Only & Accident and Health AgentAccident and Health InsuranceEasy
A recent college graduate, age 23, is employed by a small company that does not offer group health insurance. She is in excellent health and wants a low-cost option to cover her for the next 11 months until she plans to start a job with comprehensive benefits. Which type of policy would be most appropriate for her immediate needs?
- AMajor Medical Insurance
- BCOBRA Continuation Coverage
- CEmployer-Sponsored Group Plan
- DShort-Term Medical Insurance
Show answer & explanationAnswer & explanation
Correct answer: D. Short-Term Medical Insurance
Short-Term Medical Insurance is designed for individuals needing temporary coverage for a limited period, often due to gaps in employment or waiting for other coverage to begin. It's typically lower cost but offers fewer benefits than comprehensive plans.
Why the other options are wrong
- A. Major Medical is comprehensive but may be more expensive than needed for short-term, and potentially harder to qualify for quickly.
- B. COBRA is for continuing coverage from a previous employer, which doesn't apply to a new graduate entering the workforce.
- C. Employer-Sponsored Group Plans are not available as her current employer doesn't offer them.
Short-Term Medical Insurance
Temporary health insurance coverage designed to bridge gaps in health coverage, typically for periods ranging from a few months up to a year, offering basic coverage at a lower premium.
- Temporary, non-renewable coverage.
- Lower cost than comprehensive plans.
- Often excludes pre-existing conditions.
Memory trick: Short-Term Solves Sudden Gaps.