Short Term Insurance
Definition - What does Short Term Insurance mean?
Short term insurance is insurance that provides financial coverage for a specific asset for a limited duration of time, usually less than one year. For example, a person may get a short term property insurance policy that only covers their property for six months. Short term insurance is commonly used for health insurance, but it can also be used for most other types of insurance, except life insurance.
Insuranceopedia explains Short Term Insurance
People often buy short term health insurance when they are in a jam and suddenly lose their health insurance coverage. For example, if someone is fired from their job and previously relied on company health insurance, they may purchase short term health insurance to bridge the gap in coverage until they get another job. Premiums still have to be paid with short term insurance coverage, just as it does with longer term insurance.
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